Manchester United's total income fell by 3.3% to £320.3m for the year ending June 30 2012, the club's annual results have revealed.
The fall in revenue had been expected after United's failure to make the knockout stages of the Champions League last season.
For the first time however, revenue from commercial income exceeded that from broadcast and matchday income.
A United spokesman said: "The results are consistent with what we expected. We strongly believe the outstanding results in the commercial sector demonstrate the huge potential the club has, and the financial outlook is very positive."
The growth in income from sponsorship and commercial deals has certainly cushioned the blow of the shortfall from the Champions League and FA Cup compared to the previous season. Commercial revenue was up 13.7% to £117.6m, while broadcast revenue was down 11.3% to £104m and matchday revenue down 10.9% to £98.7m.
A Manchester United plc statement said: "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% 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."
