Manchester United Nets £4m Annual Loss

Manchester United (NYSE: MANU - news) has slumped to an annual loss of £4m following profits of £40m the previous year, but is forecasting record revenues ahead.

United's annual results for the year to 30 June revealed the full extent of their failure to qualify for European club football's premier competition during the 2013/14 season.

Total (Swiss: FP.SW - news) revenues fell 8.8% to £395.2m - with lower matchday and broadcasting revenues reflecting fewer games the following season as United paid the financial price of its failures on the pitch.

The accounts showed that the average annual salary of the club's 778 employees climbed 6.8% on the previous year to £261,000 despite the European football factor.

Wages - the bulk taken up by players - were equivalent to more than half of total revenues.

Sponsorship revenues climbed, however, as a string of new deals brought in a record £154.9m for the club.

United said that as a result of the improved fortunes of the team under Louis van Gaal and its sponsorships, it was expecting record revenues in the current financial year of up to £510m.

Such a performance would place it close to setting a new record revenue for a football club - with Real Madrid currently topping that table.

Executive vice-chairman Ed Woodward said: "As we look to the new season, we are enthusiastic about our strong position, both on and off the pitch.

"In recent weeks we have further strengthened our squad with an exciting mix of experience and youth, qualified for the group stage of the UEFA Champions League and seen an impressive launch of our partnership with Adidas (Other OTC: ADDDF - news) .

"Our record revenue ... guidance for 2016 reflects the underlying strength of our business and our confidence in its continued growth."