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United cuts profit forecasts

Manchester United has cut its annual profit forecast after its early exit from Europe’s premier football tournament, underlining the challenge facing billionaire Sir Jim Ratcliffe as he tries to restore the club’s fortunes.

Following its failure to progress in this season’s Uefa Champions League, United said on Wednesday that it expected to make £125mn to £150mn of adjusted ebitda in the year to June 30, down from a previous range of 140mn to £165mn. Revenues will now be between £635mn and £665mn, lower than an earlier forecast of £650mn to £680mn.

 Its early ejection from the tournament, which it has won three times, means the club, which is listed on the New York stock exchange, will earn less from broadcast rights. The deal with Ratcliffe valued United at around $6.3bn, including debt, and marks the biggest shake-up in ownership since the Glazer family acquired the club for around £790mn in a leveraged buyout in 2005.

United’s shares fell by almost 4 per cent on Wednesday following the cut in profit forecasts.

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