Man Utd facing match-day revenue drop 01/04/2010 |
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Manchester United’s financial advisers have warned that the club’s cumulative match-day revenue is likely to drop by at least £24m over the next two years.
The Guardian reports that JP Morgan’s analysis of the club’s financial position shows that United’s 2009 matchday income was £109m.
Even in its supposed "upside scenario", in which the club progresses to the Champions League quarter-final or beyond in both years, it anticipates a drop to £98m this season and to £96m next.
Indeed, United's own budgets predict an even bigger two-year fall of £29m, with much of the collapse attributed to the difficulties in selling executive boxes.
A research document stated: "Most of the impact from the economic slowdown was felt in the executive hospitality business, which we would argue is a highly discretionary expense."
Yet JP Morgan admitted that even those estimates could prove optimistic at a time when the Manchester United Supporters Trust (MUST) has been increasing its attack on the Glazer family's ownership of the club.
It added: "We note that the coming two quarters will be important to gauge demand for 2010/11 season tickets and executive hospitality seating in light of the negative MUST PR campaign."
This is one of the "external risks" JP Morgan cites, saying: "It would place significant strain on the company's limited free cash-flow generation."
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