High wage bills hurt Manchester United profits
English football giant Manchester United on Thursday said its core quarterly earnings dipped because of rising wages for its players after its return to the UEFA Champions League.
Manchester United, whose leading players include Paul Pogba and David de Gea, are currently second in the 20-club English Premier League.
They have reached the last 16 of the UEFA Champions League, Europe’s elite club competition.
“Our solid business model has allowed us to invest in the future of the club with the extension of Jose Mourinho’s contract as manager and the acquisition of Alexis Sanchez,” Executive Vice Chairman Ed Woodward said.
Manager Mourinho last month extended his contract until 2020, while Sanchez moved from Arsenal.
The club’s adjusted earnings before interest, tax, depreciation and amortisation for the three months to December 31 slipped to 67.8 million pounds ($94.9 million) from 69 million pounds a year ago.
Revenue increased 3.8 per cent to 163.9 million pounds in the period —- the second quarter of its 2017/2018 financial year.
However, salary expenses for the quarter came in 9.4 per cent higher at 69.9 million pounds on player salary uplifts due to participation in the UEFA Champions League.
Controlled by the American Glazer family, Manchester United have won the English league title a record 20 times.
Last season, Manchester United won the English League Cup, as well as Europe’s second-tier Europa League competition, securing a slot in the cash-rich Champions League for the current season.
Big Read |