Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Manchester United PLC (MANU)’s 20 Million Euro Loss to Real Madrid

Page 1 of 2

Manchester United PLC (NYSE:MANU) was eliminated from the Champions League round of 16 yesterday after their loss 2-1 to Real Madrid left them down 3-2 on aggregate.

While advancing in the Champions League is never certain, Manchester United was sitting pretty till a red card for Nani turned the tide. While we cannot know for sure how much money Manchester United missed out on by not advancing in the Champions League, with public data from UEFA we can estimate it fairly well.

The game
United took the lead in the second half from a Real Madrid own goal and looked likely to advance when a red card to Nani turned the tide. After the red, with 35 minutes to go in the game and a one-man advantage, Real Madrid scored two goals in quick succession to make it to the quarterfinals.

General Motors Company (NYSE:GM)What it’s worth
While we cannot know for sure how much revenue Manchester United PLC (NYSE:MANU) missed out on by not advancing in the Champions League, we can estimate it fairly well.

In August, UEFA released its UEFA Champions League revenue distribution system for the 2012-2013 season. UEFA estimated that it would take in total gross commercial revenue of 1.34 billion euros from media rights and commercial contracts. For the first 530 million euros of revenue, 75% goes to the participating teams while 25% goes to UEFA to support European soccer. Revenue above 530 million euros is split 82%-18%. So roughly 910 million euros is distributed among the clubs participating.

That 910 million euros is then split into two categories:

1. 500 million euros in fixed payments for participation and performance bonuses.

2. 410 million euros in variable amounts based on the proportional value of each club’s home association’s television market.

Each of the 32 sides involved in the group stage collected a base fee of 8.6 million euros with performance bonuses of 1 million euros for each win and 500,000 euros for a draw in the group phase.

Manchester United PLC (NYSE:MANU) won four games in the group phase and lost two, for a fee of 12.6 million euros. The teams competing in the round of 16 could expect a fee of 3.5 million euros.

The question remains, how much could Manchester United PLC (NYSE:MANU) have made if it had gone further?

Page 1 of 2

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!