adminTHE full cost of David Moyes’ disastrous 11-month reign as Manchester United manager has been revealed to be a staggering £50.4 million in lost prize money and wages paid to the 51-year-old.
In financial figures revealed within the club’s quarterly accounts on Thursday, the failure to qualify for next season’s Champions League will see United miss out on approximately £35 million in broadcasting revenues, performance-related payments and Old Trafford gate receipts.
With United also dropping down the Premier League earnings scale from first to seventh during the 2013-14 season, the £8.4 million slide in income, combined with the £7 million received by Moyes in salary and compensation following his dismissal, ensures that the decision to hire the former Everton manager proved as damaging to the club on a financial level as it was in terms of results on the pitch.
In a frank admission to the club’s investors during a conference call following the publication of quarterly figures, United executive vice-chairman Ed Woodward conceded that the Moyes reign had failed to live up to the club’s expectations.
“The 2013-14 season concluded last weekend and we finished a very disappointing seventh,” Woodward said. “We are now focused on bringing in a new manager who will help Manchester United return to the top of English football and challenge in Europe.
“We expect to make an announcement in due course. In the meantime we continue to be active in the transfer market.”
Louis van Gaal, the Holland coach, is due to be announced as manager early next week, and Woodward has made it clear to the former Ajax, Barcelona and Bayern Munich coach that he will be expected to return the club to the Champions League at the first attempt in order to make up for the financial impact of missing out under Moyes.
“Clearly we are [expecting to be back in Europe next season],” Woodward said. “The club’s expectations, and you will see this reflected in the transfer market and what we’ve recently done from a managerial perspective, our aim absolutely is to get back into the Champions League.
“The drop [in prize money revenue] is off a high base this year. Because we won the league in 2012-13, that triggers a much higher percentage of broadcast money that comes to us from our participation in the Champions League this year. It’s a relatively high number this year. It’s a one-off.
“But because of the high broadcast revenues in 2014, we expect the isolated impact from not qualifying for European football will be in the mid-30 millions of pounds. This includes a 15 percent reduction in the price of executive facilities [for games at Old Trafford] next season.”
United are attempting to secure the signings of at least two players before the World Cup begins next month, with a £27 million bid lodged for Southampton’s England full-back Luke Shaw. — The Telegraph
Online Reporter