LONDON (AFP) - Manchester United, the world's wealthiest football club, reported a near 30-percent fall in annual profits, hit by a weaker performance on the pitch, and warned that future results would be affected by a drop in media revenues.
The group saw pre-tax profits slide to 27.9 million pounds (41.1 million euros, 50.4 million dollars) in the 12 months to the end of July from 39.3 million in the previous financial year.
The results were impacted by financial charges linked to the reinvestment in new players of the proceeds from the sale of David Beckham to Real Madrid.
A lacklustre performance in two lucrative tournaments also weighed on profits.
The side finished third in the English Premiership last season and crashed out of the Champions League in March.
But United said its operating profits rose 6.0 percent on the year to 58.3 million pounds.
The figure, which does not take into account the depreciating value of players, was up on last year's 55.1 million.
Turnover for the year was down by 4.0 million pounds at 169 million, hit by fewer games at Old Trafford, where the Champions League final was held in 2003, and the absence of one-off benefits seen last year from a Nike contract.
"We are determined for Manchester United to be the best on and off the field," chief executive David Gill said.
"Despite the expected fall in media revenues in this current year, our long-term strategic planning will ensure that we continue to grow as both a business and football club."
The group said the anticipated decline in media revenues partly reflected the Premiership's new three-year television contracts.
The transfers of Wayne Rooney, Gabriel Heinze and Alan Smith were also expected to hit the group's finances.
Rooney, 18, was signed from Premiership rivals Everton in August in a 27 million pound deal.
In response to shareholder criticism earlier this year Manchester United also provided a full disclosure of player transfers and agent fees, which showed the club paid just over five million pounds to agents over the year.
Manchester United have been at the centre of a swirl of takeover speculation, with some media reports suggesting billionaire American sports tycoon Malcolm Glazer is plotting to take control of the club.
Glazer, who owns NFL franchise Tampa Bay Buccaneers, is already the second-largest shareholder in United with a stake of 19.17 percent.
JP McManus and John Magnier, the Irish racing tycoons, are the largest shareholders in the business with a 28.9-percent stake through their Cubic Expression investment vehicle.
Nick Humby, group finance director of Manchester United, said the club's executives were relaxed about Glazer's intentions.
"Our latest thinking is that like other shareholders he's a value investor and we continue to answer any questions he has," Humby said.
But he said that Manchester United had not had any contact with the American since its chief executive Gill met him and his sons during the club's tour to the United States in July.
McManus and Magnier are reportedly not interested in taking over Manchester United themselves.
The pair have not bought any shares in Manchester United since February, stopping just short of the 29.9 percent threshold above which an offer to buy out the club would have to be made under British takeover rules.