Financial boom time returns for Red Devils
A RAFT of sponsorship deals, and the Premier League TV broadcasting deals has helped Manchester United grow its revenue to a record levels of up to £515m.
The club also delivered a record operating profit of £68.9m in the year to June 30 and its accounts revealed the sacking of manager Louis van Gaal cost £8.4m in compensation.
Its performance is in stark contrast to last year when the club’s revenues slid 9% to £395.1m as a result of the club failing to qualify for the European Champions League under former manager David Moyes.
The Old Trafford club, which won the FA Cup for a record-equalling 12th time in 2016, said 14 sponsorship deals announcing during the financial year, six global and five regional partnerships, and three financial services deals in addition to its tie up with Adidas on August 1 2015, boosted the club’s finances.
Manchester United executive vice chairman Ed Woodward said: “Our record 2016 financial performance reflects the continued underlying strength of the business and the club is on target to achieve record revenues in 2017, even without a contribution from the Champions League.
“This strong financial performance has enabled us to invest in our squad, team management and facilities to position us to challenge for, and win, trophies in the coming years.”
Commercial revenue was up 36% to £268.3m (2015: £196.9m) and broadcast income rose to £140.4m, up 30.4% from £107.7m.
Matchday revenue rose £106.6m by 17.7% from £90.6m.
The company also recovered from its £900,000 loss in 2015 to make a profit of £36.4m.
United spent £232.2m their wages bill – an increase of £29.6m because of renewals of existing player contracts, coupled with an uplift in annual player salaries due to participation in the Champions League.
The club incurred exceptional costs of £15.1m, of which £8.4m related to the former manager Louis van Gaal and “certain members of the coaching staff for the loss of office” and £6.7m related to a registrations’ impairment charge.
