Manchester United have been forced to write off £6.7mn as a player asset for Bastian Schweinsteiger following José Mourinho’s exclusion of the World Cup winner from his squad. According to the club’s latest accounts the sum is the value of Schweinsteiger, the midfielder who was told by the manager he can only train with junior players. A statement in the document read: “Exceptional costs for the year were £15.1mn, of which £8.4mn related to compensation to the former manager and certain members of the coaching staff for loss of office and £6.7mn related to a registrations’ impairment charge regarding a reduction in the carrying value of a player no longer considered to be a member of the first team playing squad. Exceptional costs for the prior year were £2.3mn.”
The £8.4mn figure relates to the sacking of Louis van Gaal and his staff before Mourinho replaced the Dutchman. Schweinsteiger stressed towards the end of the transfer window that United would be his last club in Europe, saying he “will be ready, if the team needs me”. The former Germany captain was omitted from United’s Europa League squad but was included in the Premier League group, although that was compulsory under league guidelines.
United, meanwhile, have become the first British club to earn more than half a billion pounds in a single year, having announced a total revenue of £515.3mn. Life at Old Trafford was often uncomfortable during the 2015-16 campaign, with FA Cup glory not enough to ensure Van Gaal kept his job as manager.
A fifth-place finish in the Premier League meant United missed out on Champions League qualification but matters away from the pitch were far more successful. The club’s accounts up until 30 June 2016 confirmed the widely expected news that they had become the first British club to break the half-billion mark but it is short of Barcelona’s £570mn revenue announced in July.
United’s revenue is predicted to be £530mn to £540mn at the end of the next financial year, having achieved a record operating profit of 68.9mn in 2015-16. The executive vice-chairman, Ed Woodward, said: “Our record fiscal 2016 financial performance reflects the continued underlying strength of the business and the club is on target to achieve record revenues in 2017, even without a contribution from the Champions League.
“This strong financial performance has enabled us to invest in our squad, team management and facilities to position us to challenge for, and win, trophies in the coming years.”
Commercial revenue rose 36.3% to £268.3mn in a year that the agreement with Adidas came into play, helping retail revenues rise 207.9%. Broadcasting revenue was up 30.4% to £140.4mn and match-day revenues rose 17.7% to £106.6mn.
Woodward told investors: “In May we announced José Mourinho as our new manager. He needs no detailed introduction from me having won 23 trophies in 13 years. His appointment is a reflection of the club’s determination to return to the pinnacle of our sport.”