Off the field gloom continues for Man Utd

Manchester United fans were today braced for more off-the-field gloom after forecasts showed the club would report a sharp fall in profits this week.

The predicted decline in half-year figures – down by half on last year to £13 million – is expected to put more pressure on the United board to recommend a £800 million 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 said the club was likely to say on Tuesday that there had not been any formal takeover talks with Mr 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 Mr Glazer’s son Joel – the driving force behind the proposed deal – recovers from a severe bout of appendicitis.

The results on Tuesday should show a fall in turnover to £87 million in the six months to the end of January, compared with £92.4 million a year earlier.

United warned in September that it faced a short-term hit to profitability because of a sharp drop in media revenues, including £8 million from the latest Premier League television deal. The third place finish would also have a £6 million 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 Dresdner Kleinwort Wasserstein analyst Andrew Lee, who said the wage bill was set to be about £2.7 million higher, partly because of the signing of England striker Wayne Rooney from Everton.