Manchester United's revenue dropped by 14 percent and 17 million pounds in the second quarter of the financial year as they paid a price for missing out on European football.
United experienced healthy growth in commercial revenue but their broadcasting income dropped 39 percent over the three months, compared to the equivalent stage last year, as the cost of their absence from the Champions League was highlighted.
But the new Premier League rights deal -- which is worth 5.1 billion pounds over three years from 2016 for live broadcasts in the United Kingdom alone -- prompted executive vice-chairman Ed Woodward to say United, who are third in the division, are in a healthy financial position as they contemplate a return to the Champions League.
Woodward said: "The recently announced Premier League broadcasting rights package for 2016-19, representing an increase just over 70 percent, once again demonstrates that we are part of the top football league in the world.
"Notwithstanding no European football this season, our revenues remain strong and demonstrate the underlying strength of our business model, with commercial revenues up year over year. On the pitch, the team is well-positioned to challenge for a top-four finish in the Premier League."
United announced record revenues of 433.2 million pounds for the last financial year and expect that to drop to between 385 and 395 million for the current year.
United's debts rose from 356.6 to 380.5 million pounds, due to the rise in the value of the American dollar against the British pound, while they paid 6.3 million pounds in net finance costs in the three months these accounts covered.
United's staff costs went down, supporting their claim three months ago that their wage bill will be lower after several big earners left the club and because they are not paying bonuses for involvement in Champions League football.