Manchester United sees profits shrinking after record deal

Manchester United saw profits all but wiped out in the first quarter after the club missed out on Champions League qualification and splashed out a world record £89 million on Paul Pogba.

Pre-tax profits dived from £5.2 million to just £258,000 on revenues of £120 million, down from £123 million the year before.

Broadcast revenues at the club rose 5% to £29.1 million even without the Champions League TV income as it cashed in on the huge bidding war over the rights to screen the Premier League.

Executive vice-chairman Ed Woodward said the results reflected missing out on the Champions League.

He said: “While our financial results for this quarter reflect the impact of our non-participation in the UEFA Champions League, we are pleased that we remain on track to deliver record revenues for the coming year. During the quarter we added a number of top quality players to our squad, which once again demonstrates our determination to challenge for trophies.”

The club also got a tax credit for the quarter of £900,000, compared to an expense of £200,000 in the prior year quarter.