Manchester United set for record £500m+ yearly revenue
Manchester United look set to become the first-ever football club to record revenue in excess of £500 million in 2015, with positive quarterly results released yesterday.
Manchester United's quarterly revenue up until September 30 has increased by 39.3 percent, with the Old Trafford side bringing in £123.6 million.
This has led to the projection that revenue for the year will be £500-£510 million.
The Red Devils have been undergoing a revamp on the pitch following the retirement of legendary manager Sir Alex Ferguson in 2013. The team missed out on Champions League football last season.
However, a return to Europe’s major club competition and a record-breaking £750-million kit deal with Adidas have played their part in favorable recent results on the profit-and-loss account.
United have signed a licensing deal with South Koran football company Sbenu, a sponsorship agreement with Marathon Bet and entered into collaboration with HCL, which will be the club’s digital transformation partner.
United's stable of sponsors is the envy of any football club, with different global, regional, financial and media/telecom partners around the world, including Aeroflot as a global partner.
Interestingly, despite the significant revenue, profit for the period was only £5 million, down from the £8.9 million recorded in the same period last year. This is partly due to player transfers, with significant expenditure in the summer transfer window on new players such as Anthony Martial, Morgan Schneiderlin and Bastian Schweinsteiger.
A major chunk of the revenues is still spent on debt servicing. And in a move that will irk some Red Devils fans, the club confirmed that £0.045 will be handed out per share to the shareholders of the club. This will mean that the six Glazer children, who own four-fifths of said shares, are set for a windfall in the millions.
United look to be getting back to close to their best under Louis van Gaal this season, with the club competing for the Premier League title and in the Champions League.
The financial results also drive home the point that despite overseas investment in the likes of Chelsea and Manchester City, the Red Devils’ brand remains a global heavyweight.