Manchester United shares slid in early trading in the US, wiping about $200 million off its market value, after the club warned on profits because of its early Champions League exit.
The board of Man United said the club’s early exit from the Champions League proved costly. United were knocked out in the group stage, finishing bottom - meaning no Europa League football either - after conceding 15 goals in six games.
Missing out on the lucrative television revenue that comes with Champions League knockout matches, Manchester United’s underlying profits are now expected to be between £125 million and £150 million. They were previously expected to fall between £140 million and £165 million.
It comes as United revealed it made a £25.8 million loss in the three months to 30 September, slightly less than its loss a year earlier. Because of the summer transfer window and a low number of major European games, the quarter is often a loss-making one.
The club made £90.4 million in commercial revenue, £39.3 million in broadcast revenue and £27.4 million in matchday revenue for total revenue of £157.1 million, up 9.3%.
Following the announcement, Man United shares - listed in New York - fell to $19.92 (£15.71). That works out as around a $200 million decline in the club’s market value
The club was the subject of takeover speculation for much of last year, as the Glazer family which owns a controlling stake considered selling. Qatari politician Sheikh Hamad bin Jassim bin Jaber Al Thani and Ineos owner Jim Ratcliffe both vied for control of the team, but ultimately, the Glazers opted to retain majority control, though they did agree to sell a 25% stake to Ratcliffe. As part of the sale, he will take control of football operations.
