Investing.com -- Manchester United (NYSE:MANU) has cut its outlook for its current fiscal year after the English soccer club suffered an early knock-out from the elite Uefa Champions League, highlighting the challenge new minority shareholder Jim Ratcliffe faces in restoring the team to its former glories.
The men's side was eliminated from Europe's premier club competition last month following a disappointing campaign that saw them win just four points out of a possible 18 in group stage play.
United said the exit, along with the related loss in potential broadcasting money, had persuaded it to slash its revenue forecast for its fiscal 2024 period to a range of £635 million to £665 million, down from a previous guidance of £650 million-£680 million. Adjusted earnings before interest, tax, depreciation and amortization was also lowered to £125M-£150M.
The team posted a net loss of £25.8M in its fiscal first quarter ended on Sept. 30, a slightly narrower loss compared to the same period in 2022 thanks in part to broadcasting revenue from Champions League matches. United played in the less-celebrated Uefa Europa League in the prior season.
The update comes after Ratcliffe, the founder of British chemicals giant Ineos, agreed to pay over £1 billion for a 25% stake in the club late last year. Ratcliffe promised to take United, one of the most recognizable brands in global sport, to the "very top of English, European and world football" in the wake of recent underwhelming performances on the pitch.
Reuters reported over the weekend that Ratcliffe expects the deal, which was approved by United's board in December, to be ratified by authorities including England's top-flight Premier League in "three to four weeks."