More successes for Manchester United with turnover up and debt down
MANCHESTER: Manchester United have announced a record third-quarter turnover of £91.7m ($143m), with a 16pc decrease in debt.
The Premier League champions issued the figures to the New York Stock Exchange and revealed they are likely to generate more than £350m ($545m) this season.
United have also seen a 52pc increase in sponsorship revenue and a 28pc increase in commercial income, up to £114.5m ($178.3m) over the full nine-month period.
Debt at the club has now been reduced to £367.6m ($572.4m), a 16pc drop over the nine months.
Ed Woodward, the club’s executive vice-chairman commented: “Each of our three primary sectors – commercial, broadcasting and matchday – delivered strong top-line gains and helped us achieve a record third quarter for both revenue and adjusted EBITDA (earnings before interest, taxes, depreciation and amortization).”
The champions did however see a 25pc increase in player wages to £44.9m ($70m) after the high-profile signings of leading scorer Robin Van Persie and Shinji Kagawa.
Steven Falk, director of Star Sports Marketing, told iSportconnect: “These are an excellent set of figures from Manchester United. The commercial department is delivering a good return on the hefty investment in its London, Hong Kong and US sales offices.
Sponsorship value
“Where for many years, match day and TV revenue was the club’s commercial driver, sponsorship now leads the way. This development is likely to gather pace as the benefits from the Chevrolet deal and the soon to be renegotiated Nike (or their successor) sponsorship kick in.”
The former Manchester United marketing director added: “The question remains how much more growth is left in the franchise? Not many of MU’s massive sponsorships are renewed with the same partners and it seems unlikely that the Chevrolet deal in particular represents good commercial value to the motor giant given the going rate of shirt deals at other leading clubs.
“The Glazer family will wish to sell their golden asset at the very top of its market value. In the next few years we may just be approaching that point.”
The figures do not include the eight-year deal with AON, which was reportedly worth £120m ($187m) and includes naming rights to the Carrington training complex, training kit sponsorship and overseas tours.
United also spent £2.7m ($4.2m) on purchasing their TV channel, MUTV.
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