Manchester United’s revenue decreased by £118.1million – a whopping 19 per cent – largely because of Covid-19 and a failure to qualify for the Champions League in 2019-20.
And the disappointing financial return saw the Reds slip out of the top three of the world’s wealthiest clubs for the first time since 2012-13 as they suffered the largest fall of revenue by any club.
The Reds are fourth according to the 24th edition of the Deloitte Football Money League of the highest revenue-generating clubs.
The North West remains a power bed of world football with United, City, Liverpool and Everton all in the top 20 which includes three further Premier League teams, Chelsea, Tottenham and Arsenal.
Despite the huge fall in revenue streams which also included matchday revenue, broadcast rebates and deferrals, the Reds remain the top Premier League club, totalling £513m, and the fourth highest in the Money League.
Current Premier League champions Liverpool entered the top five for the first time since 2001-02 with revenue of £489.9m, down from £533m the previous year.
Sixth-pllaced Manchester City (£481.6m) saw an 11 per cent decrease in revenue.
The club finished its Champions League campaign behind closed doors and after the end of its financial year, hence deferring a larger proportion of UEFA broadcast revenue to the next financial year.
The club’s commercial revenue increased £19.6m, a nine per cent improvement, which was largely attributable to its new technical kit and training kit agreements.
Everton rose two places to 17th after the club recorded a one per cent increase in revenue to £185.9m, being one of only two clubs in this year’s Money League to grow revenue.
Their growth was driven by the club’s commercial revenue more than doubling to £76m. This was the largest growth (104 per cent) in commercial revenue across all Money League clubs.
Tim Bridge, director in the sports business group at Deloitte, said: “Impressively, all four North West clubs in this year’s Football Money League were able to grow their commercial revenue which was fuelled by a combination of the commencement of new major commercial deals combined with clubs’ ability to successfully mitigate losses despite the closure of stadia.
“The Covid-19 pandemic has provided an impetus for clubs to rethink and recalibrate their wider strategic objectives and business models to ensure a strong recovery from the current situation.
“In particular, the focus on both internal and external digital capabilities has accelerated as digital interaction has become the dominant way in which clubs can engage with their employees and fans.
“The most agile, and innovative clubs will be the best placed to deliver the greater value to their key stakeholders and be rewarded with the fastest and strongest recovery.”
The top three clubs are Barcelona (£627.1m), Real Madrid (£627m), and Bayern Munich (£556.1m), who replaced Manchester United in third spot.
England’s other clubs were Chelsea in eighth position (£411.9m), Tottenham Hotspur in ninth (£390.9m), and Arsenal in 11th place (£340.3m).