Manchester United’s Commercial Prowess Continues
Manchester United reveal record revenues of £627.1 million, EBITDA of £185.8 million and an operating profit of £50.0 million for 2019.
Manchester United has today announced financial results for the 2019 fiscal fourth quarter and twelve months ended 30 June 2019.
Despite their performances on the field being below par, the club’s commercial prowess continues with record revenues of £627.1 million. However, failure to qualify for the UEFA Champions League this season is expected to see projected revenues fall to between £560 to £580 million for 2020.
The announcement of 10 new or renewed global sponsorship deals for the fiscal year 2019 saw sponsorship and commercial revenues of £173 million and £275.1 million respectively whilst Retail, Merchandising, Apparel & Product Licensing revenue was £102.1 million, a decrease of £0.7 million for the year.
However, for the quarter, Retail, Merchandising, Apparel & Product Licensing revenue increased £0.7 million to £25.2 million, commercial revenue was £66.7 million, an increase of £3.3 million and sponsorship revenue also increased £2.6 million to £41.5 million.
Broadcasting revenue for the year totalled £241.2 million, an increase of £37.0 million, or 18.1%, over the prior year, primarily due to the new UEFA Champions League broadcasting rights agreement.
Matchday revenue for the year stood at £110.8 million, an increase of £1.0 million, or 0.9%, over the prior year.
Manchester United’s total operating expenses for the year were £602.9 million, an increase of £38.9 million, or 6.9%, over the prior year.
Employee benefit expenses for the year were £332.3 million, an increase of £36.3 million, or 12.3%, over the prior year, primarily due to investment in the first team playing squad.
Exceptional items for the year were £19.6 million, relating to compensation to former manager, Jose Mourinho and members of the coaching staff for loss of office.
Ed Woodward, Executive Vice Chairman, commented on the results, stating: “We remain focused on our plan of rebuilding the team and continuing to strengthen our youth system, in line with the philosophy of the club and the manager.”
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