Indifferent results on the pitch have done no harm to Manchester United’s financial results with the club announcing record quarterly earnings which mean that they are on track for year end revenues of £500m or more.
Revenues were £123.4m, up just under 30 per cent on the same period last year. There was a profit of £11.7m compared with a loss of £7.1m last year.
Indifferent results on the pitch have done no harm to Manchester United’s financial results with the club announcing record quarterly earnings which mean that they are on track for year end revenues of £500m or more.
Revenues were £123.4m, up just under 30 per cent on the same period last year. There was a profit of £11.7m compared with a loss of £7.1m last year.
The results were driven by commercial revenue which was up 37.7 per cent at £65.8m. United has the most sophisticated commercial operation of any club with global contracts being secured with Gulf Oil and 20th Century Fox in the quarter.
Answering questions from investors, Ed Woodward said that if the club was in the Europa League rather than the Champions League, it would cost £4m – £7m in match day revenues, but £30m in broadcast revenues. However, players’ wages would drop by about 15 per cent because of clauses in their contracts.
The commercial operation could probably ride out one season in the Europa League. The £75m annual adidas deal will only be cut by 30 per cent if United fail to qualify for the Champions League for two successive seasons. If United win the cup final they will get a £4m bonus from adidas.