Manchester United paid the price for last season's early exit from the Champions League as the Premier League giants revealed on Tuesday that their total income fell by 3.3 percent to £320.3 million ($519 million) for the year ending June 30, 2012.
United's annual results showed a fall in revenue which had been widely predicted after Sir Alex Ferguson's side failed to advance past the group stages of the lucrative Champions League last term.
However, for the first time the club's revenue from commercial income exceeded that from broadcast and matchday income, underlining the growing global reach of the United brand.
Commercial revenue was up 13.7 percent to £117.6 million, while broadcast revenue was down 11.3 percent to £104 million and matchday revenue down 10.9 percent to £98.7 million.
A Manchester United plc statement read: "Broadcasting revenues for the year decreased... primarily as a result of our elimination at the group stages of the Champions League.
"For the fourth quarter, revenues decreased 37.4 percent to £27.5 million as no participation fees were earned compared to Champions League participation fees from the quarter-final, semi-final and final in the fourth quarter of the prior year.
"In addition, we earned minimal revenues from the FA Cup following our fourth round exit, compared with reaching the semi-final in the previous year.
"Matchday revenues for the year decreased... as a result of having played four fewer home games compared with the prior season when we also received a share of the gate receipts from the Champions League final and FA Cup semi-final, both of which were held at Wembley Stadium."
Despite the drop in turnover, United actually recorded a profit of £23 million, although that was entirely due to a tax credit of £28 million, without that credit there would have been a £5m loss.
Ed Woodward, United's executive vice-chairman, said in a statement: "We are delighted to announce our first results as a NYSE (New York Stock Exchange) listed company; fiscal 2012 was the best year ever for Manchester United's commercial business.
"Our world-record $559 million shirt sponsorship deal with Chevrolet and the Premier League's new £1 billion a year UK television rights deal highlight the outstanding growth prospects for the future.
"We also expect a substantial increase in the value of the Premier League's international television contracts scheduled to be announced later this year.
"In addition, we continued to strengthen our team by signing world-class players such as Robin van Persie and Shinji Kagawa over the summer."