Manchester United have become the first English club to break through the half billion barrier in terms of revenues in a financial year. They earnt £513.3m in their 2016 fiscal year, compared with £395.2m the previous year. They made an operating profit of £68.9m and a net profit of £36.4m.
Income was boosted by winning the FA Cup and 14 new sponsorships. Commercial revenue was up 36.3 per cent to £268.3m. This more than offset the substantial compensation of £8.4m paid to Louis van Gaal and his team.
Manchester United have become the first English club to break through the half billion barrier in terms of revenues in a financial year. They earnt £513.3m in their 2016 fiscal year, compared with £395.2m the previous year. They made an operating profit of £68.9m and a net profit of £36.4m.
Income was boosted by winning the FA Cup and 14 new sponsorships. Commercial revenue was up 36.3 per cent to £268.3m. This more than offset the substantial compensation of £8.4m paid to Louis van Gaal and his team.
Broadcast revenue was up 30.4 per cent to £140.1m, primarily due to participation in the Champions League, and will increase further this year with the new television deal. Matchday revenue was up 17.7 per cent to £106.6m. Net debt did increase slightly to £260.9m, reflecting currency movements.
With midfielder Bastian Schewinsteiger no longer considered part of the first team squad, the club has written off his estimated value of £6.7m.
The accolade of being the first club to report revenues of over £500m did, however, go to Barcelona who reported an annual income of £570m in July. However, in their report to investors in New York on Friday United will say that they earned more than Barcelona and Real Madrid using the average Euro exchange rate throughout the year.