The most crucial part of their departure from the competition is laid bare by the statistics from last season’s competition, where they took the bulk of their prize money from the second round onwards. It is made up in part of the progress they make, having made £14 million last year getting to the final. They also made a significant amount of money from TV, as English clubs take more from UEFA than other countries due to the size of the domestic market.
But they will hope that Chelsea and Arsenal can attract many TV viewers as if they can do so then United’s total TV revenue will increase proportionately. This is because United are due to take the majority of half of the TV money available from UEFA as they won the Premier League last season. UEFA reward the team which won the title in each country the previous year.
United can hope to make up lost gate receipts in the Europa League, but the prize for winning the competition will only make a small dent in the loss that they make from the Champions League exit.
In total, some £20 million is likely to be lost as a result of the group stage exit, but United’s accountants are unlikely to be too worried. Their controversial owners, the Glazers, have reduced the club’s debts in recent times and they returned to profitability last year. They have also since signed a sponsorship deal with DHL for their training kit and can hope realistically that their increased revenue will more than make up for the blow of missing out on the Champions League.
In fact the impact will most likely be felt on the pitch as it will likely lead to a reduction in either the amount United pay for players or pay them in salaries. This could be key as the club look to add to a midfield decimated by injury. In the summer they could not sign Wesley Sneijder because of his wage demands, and they may find that still a problem after the limitations placed on them by a CL exit. This is a team run by businessmen, not football people, and the exit will mean that money has to be dropped from somewhere else.
It really should be their city rivals though who have more to fear. Man City had a catastrophic loss last season of £197 million and will unlikely have an easier draw in the Champions League next season if they get there, as they are still so low down on the UEFA coefficients list. To make inroads into those losses part of what needs to be done is to progress in Europe. And not the Europa League. City like United, will now miss out on significant potential revenue and will likely suffer for it. Unlike United, their revenues aren’t large, as they are predominantly based on the owners’ pumping money in. Now the owners are pumping in money via Etihad, the company owned by their owner’s half brother. If we’re not beating about the bush, City are sponsoring themselves, though the accountants, PR people and UEFA may not see it that way. But to the man on the street, that is essentially the case. But this blow will put a dent in City’s sizeable task as they look to reduce the losses made every year. Unlike Barcelona, Real Madrid or another of Europe’s big clubs, City are a good target for UEFA and the financial fair play rules. They aren’t a big club who the Champions League can’t do without. They would be easy to ban. And the exit from the Champions League will only make that more likely.
