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Missing out on European soccer competition next season will cost Manchester United more than $50 million, the U.S.-owned English Premier League club said on Thursday.
But United, a 20-time English champion, which finished seventh this season and did not qualify for European competition, reassured fans it still had the money to rejuvenate its squad with a new coach and players.
There was no word from the club, owned by the Glazer family, which owns the NFL's Tampa Bay Buccaneers, on the identity of a new manager after the departure of David Moyes last month following a failed first season in charge. United is expected to confirm Dutch national team coach Louis van Gaal as their new manager, according to media reports.
Executive vice chairman Ed Woodward told financial analysts that the club would make an announcement in "due course" on the new manager and remained active in the transfer market.
"Our aim absolutely is to get back into the Champions League," said Woodward, stressing the need to ensure that the absence from the top European competition was a one-time event.
The financial effects of a rare failed season will be felt in 2014-15, when United will not play in Europe for the first time in more than two decades. "We estimate that the isolated impact on fiscal year 2015's EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) from not qualifying for European football will be in the mid 30 millions of pounds ($50 million)," Woodward said.
United, one of the richest soccer clubs in the world, got a bigger share of European revenue in the current year because it won the Premier League title in 2012-13. The European blow will be cushioned by a new sponsorship deal that will involve players wearing the logo of General Motors' Chevrolet on their famous red shirts from the start of next season.
United said Moyes would get a pay off in the "single digit" millions of pounds after his departure less than a year into a six-year contract. United are also facing a major decision on a new retail partner as their current contract with Nike expires next year. "We continue to have very good discussions with a number of parties," Woodward said.
Despite the losing season, United reported revenue in the three months to March rose 26 percent to $194 million and operating profit reached $67 million. For the year, the club stuck to its forecast for revenue of between $710 million and $720 million, with EBITDA (operating profit) of $214 million to $128 to $223 million. United shares, quoted on the New York Stock Exchange, added 0.8 percent to $16.75, having risen from $14 when they were floated in August 2012.