By Andrew Warshaw
September 18 – Manchester United, regarded as the most popular club in the world, saw their total revenue drop by 3.3 per cent to £320.3 million ($520.5 million/€398.8 million) for the year ending June 30 2012, the club’s annual financial results revealed today.
The figures proved, if anyone doubted it, how powerful Champions League success can be.
United failed to reach the knockout stages last season having been losing finalists the season before.
For the first time, however, revenue from commercial income exceeded that from broadcast and matchday income, illustrating United’s pulling power in terms of sponsorship and brand enhancement.
Commercial revenue was up 13.7 per cent to £117.6 million ($191.1 million/€146.2 million), while broadcast revenue was down 11.3 per cent to £104 million ($169 million/€129.5 million) and matchday revenue down 10.9 per cent to £98.7 million ($160.3 million/€122.8 million).
United posted a significant fourth-quarter loss in the three months to June 30 after finishing without a trophy for the first time since 2005.
But officials pointed to the bigger picture and said the results in the commercial sector showed how strong a brand the club was.
“The results are consistent with what we expected,” said a United spokesman.
“We strongly believe the outstanding results in the commercial sector demonstrate the huge potential the club has, and the financial outlook is very positive.
“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 per cent to £27.5 million [$44.7 million/€34.2 million] as no participation fees were earned compared to Champions League participation fees from the quarterfinal, 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.”
Despite the drop in turnover, United still managed to record a profit of £23 million ($37 million/€29 million), although that was entirely due to a tax credit of £28 million ($46 million/€35 million) – without which there would have been a £5 million ($8 million/€6 million) loss.
Ed Woodward, United’s executive vice-chairman, said in a statement: “We are delighted to announce our first results as a NYSE [New York Stock Exchange] listed company; fiscal 2012 was the best year ever for Manchester United’s commercial business.”
“Our world-record $559 million [£334 million/€428 million] shirt sponsorship deal with Chevrolet and the Premier League’s new £1 billion [$1.6 billion/€1.2 billion] a year United Kingdom television rights deal highlight the outstanding growth prospects for the future.
“We also expect a substantial increase in the value of the Premier League’s international television contracts scheduled to be announced later this year.
“In addition, we continued to strengthen our team by signing world-class players such as Robin van Persie [picture above, left] and Shinji Kagawa over the summer.”
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