United chief predicts record year
MANCHESTER United fell into the red in the year to the end of June as revenues slid nearly 9% to £395.1m as the club failed to qualify for European competition under former manager David Moyes.
The club said it made a pre-tax loss of £3.9m, compared with a profit of £40.5m in 2014. Adjusted EBITDA was down 7.8% to £119.9m.
The strenthening US dollar sparked a 20% hike in grosss debt to £411m, the club said, while net debt after cash of £155m was deducted was down 7.3% at £255.2m.
Looking forward, the club said it expects to deliver record earnings and revenue figures for 2016, with turnover hitting topping £500m, thanks to new sponsorship and broadcast deals.
Executive vice chairman Ed Woodward said: “As we look to the new season, we are enthusiastic about our strong position, both on and off the pitch. In recent weeks we have further strengthened our squad with an exciting mix of experience and youth, qualified for the group stage of the UEFA Champions League, and seen an impressive launch of our partnership with adidas.
“Our record revenue and EBITDA guidance for 2016 reflects the underlying strength of our business and our confidence in its continued growth.”
The club said sponsorship revenues had increased 14.1% for the year to a record £154.9m thanks to five new global deals, four regional partnerships and two financial services and telecom partnerships.
Other highlights included the world’s largest kit deal with adidas – £750m over 10 years, which launched on August 1.
Future growth will be underpinned by domestic Premier League incomes. During the 2017 to 2019 cycle BSkyB and BT will pay £5.14bn for the 2016/17 to 2018/19 seasons up from £3bn for the 2013/14 to 2015/16 seasons.
Last season under Louis Van Gaal United returned to the UEFA Champions League competition – which is worth between £30m and £40m in revenues – after a fourth place finish in the Premier League.
United said it would begin paying quartley dividends of $0.045 (£0.03) for each share owned by a shareholder.
This will mean that the family’s majority shareholders, the Glazer family will pick up around £15m a year. The six Glazer siblings together own approximately 131m shares, 80% of the total issued.
