MANCHESTER: Manchester United have announced a significant increase in revenue for the first financial quarter.
Rob Harris of the Associated Press shared the news on Thursday, which showed a huge rise in the Red Devils’ earnings for July, August and September:
The MailOnline’s Mike Keegan provided further details, as United’s return to Champions League action and a lucrative £750 million sponsorship with sportswear company Adidas has seen the club’s retail, commercial, broadcast and matchday revenues soar. They also had a slightly lower net spend on players in the summer transfer window this year than in 2014.
Several costs have also risen, though, such as operating and employee expenses, likely also due to the increased number of matches United are playing as a result of their involvement in Europe.
The club’s net debt also grew, while their profits almost halved on the previous year:
A Breakdown of United’s 1st Quarter Finances
Revenue/Cost Current Figure Increase Of Decrease Of
Retail Revenue £22.3 million £14.5 million N/A
Commercial Revenue £71.2 million £14.4 million N/A
Mobile/Content Revenue £2.6 million N/A £100,000
Matchday Revenue £24.8 million £9.7 million N/A
Broadcast Revenue £27.6 million £10.8 million N/A
Operating Expenses £106.7 million £13.9 million N/A
Employee Expenses £58.9 million £9.5 million N/A
Net Spend on Players £49.9 million N/A £6 million
Overall Revenue £123.6 million £34.9 million N/A
Debt £286.2 million £14.3 million N/A
Profit £5 million N/A £3.9 million
United executive vice chairman Ed Woodward commented on the overall results as the club target a record-breaking revenue of £500 million for the financial year. Per Keegan, he said:
Our record first quarter revenues demonstrate the continued strength of our businesses. We are delighted with the early progress made in licensing. During the quarter we entered into an agreement with HCL to be our Digital Transformation partner, which will enable us to connect with our fans around the world in innovative ways and further strengthen and grow our commercial revenues.
On the whole, the club are reaping the rewards from their return to the Champions League, while the impact of the Adidas deal is as significant as expected.
The club’s financial health will continue to serve them well for the remainder of the fiscal year and beyond as they seek to return to the glory days they enjoyed under Sir Alex Ferguson, which will require yet more investment into the squad with, at the very least, one more attack-minded player.
What will no doubt be a continued source of ire for United’s fans though, is that the club will make the first dividend payment to its shareholders—equating to over £15 million per year to owner Malcolm Glazer’s children, according to Keegan.
