Manchester United's Cost of Missing the Champions League

Making a profit in sports is harder than many would expect. Football is no exception. With clubs forced to self-police themselves in the spending department, more than a few clubs have suffered much acclaimed financial issues over the years.

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While the goal is always to make the most money possible, the other objective for most is to produce a winning team. With wins and losses dictating the maximum amount of profit a side can win, why would an owner not push for the best possible results?

While some clubs such as Swansea City, Stoke City, Crystal Palace and others will openly admit that because finishing higher than mid table is unlikely, the club will not plan on much more than a mid-table amount of income.

Spending only what you earn has made these clubs perennial Premier League clubs. On the other hand, clubs at the top of the Premier League have the wiggle room to overspend on occasion. Spending money the club expects to get before they even begin.

All is fine for these clubs as they have the money to balance the books without issue should problems arise. Manchester United are clear examples of this. Allowing former manager David Moyes to spend money the club did not have, but expected to have proved to be a mistake.

The 2013-2014 Annual Report from Manchester United dives further into the mess caused by David Moyes.

While a commercial revenue from rose during the 2013-2014 season, so did operating expenses. Profits fell from a record £146,250,000 to £23,835,000. With Champions League revenue still remained for the club, signaling even greater profit loss for the current financial year.

With Champions League revenue — commercial and sponsorship — representing 10% of Manchester United’s income, the Red Devils can only expect profits to fall for the second straight year.

For a club as big as Manchester United, these losses will not upset the clubs pocket book. However, should the club continue to fall from its once great height, the Red Devils could face some problems.

What type of problems you might ask? Just look to Manchester United’s rival Leeds United for a clear cut example.

Spending fourteen years in the top flight of English football, Leeds United won the last first division title before the creation of the Premier League. While the side played most of its seasons in the top echelon of the Premier League, greed would get the better The Peacocks.

Spending money to compete in the Champions League, Leeds reached the Semi-Finals of the 2000-2001 Champions League. Continuing to push for European success was however a mistake. The club failed to reach the Champions League the next two season.

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Losing early on in the UEFA Cup — now Europa League — over the next two seasons, Leeds United began to hemorrhage money. The sides second season of UEFA Cup competition saw the side finish fifteenth in the Premier League. The following year, Leeds were relegated to the Championship.

The fall did not stop there. Leeds third season in the Championship saw The Peacocks be relegated to League One. For the first time in the history of the club, Leeds had fallen outside of the top two division of English Soccer.

While Leeds United have made it back to the English Championship, their financial issues have yet to be solved. Should Manchester United continue to struggle at the top of the Premier League table as well as in Europe, Leeds United fate could be their own.

While United currently sit third in the Premier League table, there is still a small chance that Liverpool can catch and pass United in the top four.

Should United once again fail to qualify for the Champions League, the side could be in for some real trouble. Trouble with both their fans and finances that could cost United in the long run.

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Manchester United: The Cost of Missing the Champions League

By Robert Molnar | Apr 23, 2015

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