Manchester United profits up with new training kit deal round the corner
LONDON: Manchester United have reported a rise in profit and are set to reach their financial targets after completing a number of sponsorship deals around the globe.
United signed a total of six new sponsorship deals which sent sponsorship revenue up by almost 50%, to £20.8m ($32.2m).
The club recently announced deals with two Chinese companies; the soft drink manufacturer Wahaha and China Construction Bank.
Following on from this, the Premier League side announced Japanese paint manufacturer Kansai as their official paint partner.
On top of these sponsorship deals, United have also bought out Sky’s one-third minority equity stake in MUTV.
Pre-tax profit was up by 47.9pc to £28.4m ($44m) in the three months to the end of December.
Total revenue at the club increased by eight per cent £110.1m ($170.7m), but gross debt also went up to £359.7m ($557.78) from £366.6m ($568.5m)
This is now the second time United has reported financial results since floating on the New York Stock Exchange in 2012.
The floatation coincided with the Glazer family paying down some of its debt, which saw it fall below the £400m ($620.3m) mark for the first time since taking over in Manchester in 2005.
As it stands, shares trade at $19 (£12.25) and the club is worth $3bn (£1.94bn).
The news coincides with Manchester United agreeing an eight-year sponsorship deal for their training kit, with an unidentified company.
Vice-chairman Ed Woodward told financial analysts: “We are delighted with the conclusion of this key sponsorship agreement and at the request our new training kit partner have agreed to withhold further pending details pending a formal announcement.”
The club has bought out the final two years of its training kit agreement with DHL, in order to get a better deal.
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