United gloom sets in with fall in profits likely

MANCHESTER United football fans are braced for more off-the-field gloom after forecasts showed the club are likely to report a sharp fall in profits.

The predicted decline in half-year figures - down by half on last year to £13 million - is expected to put pressure on United’s board to recommend an £800m takeover offer from US tycoon Malcolm Glazer.

The disappointing start to the financial year is likely to be blamed on falling media income and the impact of the team’s third-place Premiership finish last season, which meant reduced earnings from the Champions League.

In terms of takeover interest, the Sunday Telegraph claimed the club was likely to say today there had not been any formal takeover talks with Glazer and his representatives.

The owner of the Tampa Bay Buccaneers holds 28.1% of the club but has seen his interest draw strong protests from fans.

He has offered 300p a share but has failed to win support from the United board because of the high level of debt involved in the approach.

Due diligence has been completed by the Glazer team but the bid process has since been put on hold while Glazer’s son Joel - the driving force behind the proposed deal - recovers from illness. The results should show a fall in turnover to £87m in the six months to the end of January, compared with £92.4m a year earlier.

United warned in September it faced a short-term hit to profitability because of a sharp drop in media revenues, including £8m from the latest Premier League television deal.

The third-place finish would also have a £6m knock-on effect on media revenues from the Champions League. And the chances of an immediate recovery have been hit by the club’s recent exit from the Champions League at the first knockout round stage.

The Business newspaper said wages were expected to account for 51% of turnover by the end of the financial year, against 45% last year.

It quoted an analyst who said the wage bill was set to be about £2.7m higher, partly because of the signing of England striker Wayne Rooney from Everton.