Business Directory

Browse the Directory

Sign Up to the Directory

FC Business Twitter
FC business Linked in
FC Business facebook
FC Business Youtube

Manchester United Post Increased Commercial Revenues

Tue 18th Sep 2012 | Money & Finance

Manchester United’s commercial revenues grew by 13.7% according to the latest results published today overtaking its broadcasting and matchday revenues.

The club’s results for the year ending 30th June 2012 published today show that commercial revenue for the year increased 13.7% to £117.6 million driven by the addition of several new global and regional sponsorships.

However, total revenues were down 3.3% to £320m from the previous year (2011).

United’s sponsorship revenue increased 14.9% to £63.1 million whilst retail, merchandising, apparel and product licensing revenue increased 8.0% to £33.8 million.

In addition new media and mobile revenue increased 20.3% to £20.7 million with the club now boasting a Facebook following of over 26.5m fans.

Ed Woodward, Executive Vice Chairman commented on the results stating: “We are delighted to announce our first results as a NYSE listed company; fiscal 2012 was the best year ever for Manchester United’s commercial business.

“Our world-record $559m shirt sponsorship deal with Chevrolet and the Premier League’s new £1bn a year UK television rights deal (a 70% increase) highlight the outstanding growth prospects for the future.

“We also expect a substantial increase in the value of the Premier League’s international television contracts scheduled to be announced later this year.”

United’s broadcasting revenues decreased 11.3% to £104.0 million primarily as a result of elimination at the group stages of the Champions League. For the fourth quarter, revenues decreased 37.4% to £27.5 million as no participation fees were earned compared to Champions League participation fees from the quarter-final, semi-final and final in the fourth quarter of the prior year.

In addition, United earned minimal revenues from the FA Cup following their fourth round exit, compared with reaching the semi-final in the previous year.

Matchday revenues for the year decreased 10.9% to £98.7 million as a result of playing four fewer home games compared with the prior season when they also received a share of the gate receipts from the Champions League final and FA Cup semi-final, both of which were held at Wembley Stadium.

Total operating expenses increased 4.6% for the year to £285.1 million, primarily due to an increase in football player and staff compensation as they continue to invest in the team; together with an increase in costs related to additional non-player headcount driven by the continued growth of their commercial operations.

Net finance costs for the year decreased 3.5% to £49.5 million primarily due to a £6.4 million decrease in interest payable on bank loans and senior secured notes following the repurchases of senior secured notes (which were subsequently retired as part of the IPO process) and a £16.9 million decrease in interest payable and accelerated amortisation of debt issue costs on the payment in kind loan repaid in fiscal 2011.

The club’s much maligned borrowings were £436.9 million at 30 June 2012 compared to £458.9 million at 30 June 2011, and since the year end United have used the net primary proceeds from the IPO to reduce their U.S. dollar denominated senior secured notes.

Posted by: Aaron Gourley




If you have any football business related news stories you’d like to share then please contact us – agourley@fcbusiness.co.uk or ryan@fcbusiness.co.uk

Add to: Google Google | Yahoo Yahoo | Live Live | del.icio.us del.icio | Digg Digg |

Related Articles

West Ham Champions Of Season Ticket Affordability

Wed 19th Jul 2017 | Money & Finance

With the new Premier League season approaching it promises to be another exhilarating season, full of twists as well as surprises for fans. Chelsea convincingly captured their fifth Premier League...

Everton Sign Landmark Stadium Financing Partnership

Thu 6th Jul 2017 | Money & Finance

Everton Football Club has signed an agreement with ICBC (London) plc and Industrial and Commercial Bank of China Limited, which will provide the Premier League club with a £60m 3-year credit...

How Football Clubs Source Their Revenue

Thu 22nd Jun 2017 | Money & Finance

It will come as a surprise to no one that football is big business these days. Although players’ wages – especially at the top teams – have increased remarkably, the clubs can pay...

“Why Does Your Club Offer Discounts?” 5 Responses

Tue 6th Jun 2017 | Money & Finance

Following my article last week on the 3 observations about discounts offered on football clubs’ merchandise stores ; I wanted to share some more insight in to the merchandise space. I’ve...