Premier League: Manchester United make 84% annual net income losses but amass record revenue
Manchester United announced that their revenue increased to a record amount in the same year annual profits fell severely.
The football club said net income fell by 84% for the year to 30 June to £23.8m, from £146m a year ago.
Manchester United said its 2013 net income benefitted from a tax credit of £155.2m, which it received from "US deferred tax assets", and had they not received it, the club would have made a loss of £8.8m in 2013.
Despite this, United's executive vice chairman Ed Woodward was positive about the state of the club's finances from last season:
He said, "We are very proud of the results achieved in fiscal year 2014 as we once again generated record revenues."
"With Louis van Gaal at the helm as manager, and the recent signing of some of the world's leading players to further strengthen our squad, we are very excited about the future and believe it's the start of a new chapter in the club's history."
"Louis' footballing philosophy fits very well with Manchester United and he has an impressive track record of success throughout his career, winning league titles with every club he has managed."
The record revenue came after an increase of 19% to £433.2m, compared with £363.2m a year earlier. Another significant outlay was the £5.2m in compensation that was paid out to former manager David Moyes and his backroom staff following his sacking in April.
One thing the figures have not incorporated is the loss of potential revenue from not being in the Champions League this season, having finished 7th in the league last year.
The club acknowledged that they are expecting a fall in revenue for 2015, despite signing a £750m ten year deal with kit manufacturer Adidas over the summer.
United are without a win this season, and will be taking on QPR at Old Trafford this weekend, hoping that their newest superstar arrival Radamel Falcao will be able to take part.