Manchester United has reported a 74 per cent rise in profits for the second half of 2012, driven by rising revenues. Pre-tax profits for the last six months of the year were £22.3m.
With the new Premier League broadcasting deal next season, and a good chance of continuing success in the Champions League, profits should continue to rise. The club also considers that the new Premier League financial rules will be of benefit to them.
Manchester United has reported a 74 per cent rise in profits for the second half of 2012, driven by rising revenues. Pre-tax profits for the last six months of the year were £22.3m.
With the new Premier League broadcasting deal next season, and a good chance of continuing success in the Champions League, profits should continue to rise. The club also considers that the new Premier League financial rules will be of benefit to them.
Success in securing sponsorships has been a key element in the improvement in the club’s financial position. The club now has 33 sponsors across the globe. Commercial revenue from sponsors rose 26.4 per cent for the six months to 31 December 2012.
The club also announced that it had signed a new eight year sponsorship deal for its training kit with an as yet unnamed sponsor. It bought out the last two years of DHL’s existing contract so that it could strike a better deal.
United’s recent strategic acquisition of BSKyB’s one-third stake in MUTV, taking full control of their global television channel, is seen as key to expanding their media business in the future. As it was, the club’s New Media and Mobile business saw further growth to £5.3m.
However, debt remains at just under £367m. Total operating expenses grew 10.5 per cent to £84.5m primarily due to new player signings and player wage increases.
After the shares were floated on the New York stock exchange last year at $14 a share, below the originally hoped for price, they fell back to $12. However, investor confidence has strengthened and shares are now trading at nearly $19 giving the company a valuation of over $3bn.