Manchester United Claim Optimism Despite Significant Dip in Revenue

Manchester United are confident of a bright financial future despite seeing revenue drop significantly because of a lack of Champions League football this term.

A seventh-placed Premier League finish in 2013-14 means the Red Devils are absent from European competition currently, a factor which has caused a decrease in broadcast and matchday revenues, as well as reduced sponsorship payments from Nike.

As reported by the Daily Mail's Mike Keegan, matchday revenue dropped from £33.7 million from the same period last term to £30.9 million, while AP's Rob Harris relays the decrease in broadcasting earnings:

United also lost approximately £1.2 million in merchandising due to the Champions League clauses in their Nike contract. 

However, executive vice-chairman Ed Woodward points to causes for optimism, which includes United's currently lofty league position and the Premier League's recent £5 billion television deal, per Keegan:

"

The recently announced Premier League broadcasting rights package for 2017-19, representing an increase just over 70 per cent, once again demonstrates that we are part of the top football league in the world. 

Notwithstanding no European football this season, our Revenues and EBITDA remain strong and demonstrate the underlying strength of our business model, with commercial revenues up year over year. On the pitch, the team is well positioned to challenge for a top four finish in the Premier League and we look forward to the rest of the season.

"

Despite United currently sitting in third, they are in for a scrap with numerous teams fighting for Champions League spots.

Michael Regan/Getty Images

The recent Old Trafford figures show just how important participation in Europe's premier cup competition is.

A return to Europe, along with their new world-record £750 million kit deal with Adidas, should provide United with an imminent upturn in revenue after the latest, short-term struggles.