May 15 – Manchester United unveiled third quarter revenues up 29.9% to £123.4 million, predominantly the result of a controlled explosion in commercial revenues which rose 37.7% for the quarter to £65.8 million.
Underpinning the rise were global sponsorship deals with Gulf Oil International and 20th Century Fox, a regional sponsorship with YouC1000 (isotonic drinks partner in Indonesia), an MUTV deal with Sina Sports in China, and the renewal of the Yanmar partnership.
The club says it is on course for year end revenue of between £500-510 million and profit before interest and tax (EBITDA) of £178 -188 million.
The club’s merchandising operation for the quarter was £24.4 million, an increase of £16.8 million, or 221.1% over the prior year quarter – this is primarily attributed to the start of the new agreement with adidas from 1 August 2015 and the contribution from several businesses previously operated by Nike.
The club also benefitted from two home games in the Europa League – it was not in European competition in the 2014-15 financial year. Matchday revenue for the third quarter was £29.8 million, up by £4.3 million, primarily due to these two Europa League games.
Next year the Man Utd will miss out on the big money earning potential of the Champions League but will have Europa League competition. It will also benefit from the huge increase in the UK broadcast contract. There will also be a boost in from international broadcast rights which are said to be up by about 40% for the 2017-19 cycle.
Ed Woodward, Executive Vice Chairman, commented, “The conclusion to this year’s season demonstrates once again why the Premier League is the most popular league in the most popular sport.
“As we reflect on our season, we are delighted by the emergence of yet another crop of exciting young players that demonstrate once again our terrific track record of youth development. We are looking forward to the FA Cup final on May 21st and hopefully winning this special trophy for a record equaling twelve times.”
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