Manchester United reports record revenues

Antonio Valencia celebrates scoring at Old Trafford Manchester United won the Premier League in Sir Alex Ferguson's last season in charge

Premier League champions Manchester United have reported record revenues of £363m for the 12 months to June.

The club, controlled by the Glazer family, saw a big rise in commercial revenues driven by sponsorship deals, as well as merchandising and product licensing.

It made a net profit of £146m.

The figures are the first released by United since David Moyes took over as manager following the retirement of Sir Alex Ferguson last season.

The club transformed into one of football's global financial powerhouses during his reign, and was floated on the New York Stock Exchange last year.

Ed Woodward, Manchester United's executive vice chairman, said: "We are very proud of our results. Our commercial business continues to be a very powerful engine of growth enabling the team to continue to be successful.

Player costs

"We won our 20th English League title last season and are delighted to have David Moyes lead our football team into a new and exciting chapter. We look forward to a successful 2013-14, both on and off the pitch."

Over the last financial year, United signed a number of sponsorship deals that boosted commercial revenues by 30%.

Start Quote

The merchandising machine at the company's disposal is firing on all cylinders”

End Quote Richard Hunter Hargreaves Lansdown Stockbrokers

They included a deal with US carmaker Chevrolet, which will become the club's shirt sponsor next season.

Commercial revenues now account for £153m - 42% of the clubs total income.

The rest comes from television rights, worth £102m, and match-day revenues which totalled £109m.

About half of all the money brought in was spent on staffing costs, however. This included paying for new players and increased wages and bonuses for current players.

The club also hired more people to help with its commercial expansion.

It also reported costs of £6.2m related to "exceptional items", which included the cost of paying off former coaching staff who left as a result of Sir Alex's departure.

Manchester United have seen a steady start to their season under new manager David Moyes, winning two of their four opening Premier League matches and their first group game in the Champions League.

Richard Hunter, head of equities at Hargreaves Lansdown Stockbrokers, said the on-field success of the club last season, was reflected in its financial results.

"Apart from the kudos and indirect income associated with winning the Premier League - not least of which is maintaining the strength of the global brand - the merchandising machine at the company's disposal is firing on all cylinders," he said.

He added that the club's forecast for next season was for further strong growth in revenues and sponsorship income, based on the assumption that they would reach the quarter finals of the domestic cup competitions and the Champions League, and finish at least third in the Premier League.

More on This Story

Related Stories

From other news sites

* May require registration or subscription

The BBC is not responsible for the content of external Internet sites

More Business stories

RSS

Business Live

  1.  
    07:27: AGA profits
    AGA Rangemaster

    AGA Rangemaster has reported slight fall in an annual pre-tax profit to £700,000, compared with £1.1m a year earlier. It has also announced it will not be paying a dividend to shareholders.

     
  2.  
    DFS shares Via Twitter

    Retail analyst Nick Bubb tweets: The Chairman of DFS trumpets that it stands for "Dedication, Family and Success". Or Dull Furniture Sale? ;-) @NickBubb1

     
  3.  
    07:15: DFS shares
    DFS

    Buy one, get one half price! Furniture retailer DFS has priced shares at 255p - at the lower end of expectations. The stock starts trading at 0800 today and means the company will be valued at close to £550m.

     
  4.  
    07:02: Eurozone outlook BBC Radio 4

    One thing that may help the eurozone economy is a small but significant accomplishment by the ECB that appears to have gone largely unnoticed. That was last Autumn's asset quality review of the banks, by the ECB which "gave pretty much everybody a clean bill of help", says Mr Cameron Watt. "And that's allowing banks to sell assets off their balance sheets."

     
  5.  
    Greek economy Via Twitter Adam Parsons Business Correspondent

    Former Greek shipping minister @MVarvitsiotis tells #WUTM "we'll do whatever it takes...to stay in Eurozone...leaving would be a disaster" @AdamParsons1

     
  6.  
    06:47: Eurozone outlook BBC Radio 4
    Draghi

    Mr Cameron Watt tells Today: "There is a following wind which is the lower oil price and the material decline in the currency [euro] against the dollar". He says those factors should help boost the eurozone economy, although he he sceptical that it will do as well as ECB president Mario Draghi (pictured) suggested at his press conference on Thursday.

     
  7.  
    06:35: ECB bond buying BBC Radio 4
    The EURO logo is pictured in front of the former headquarter of the European Central Bank

    We're talking quantitative easing (QE) on the Today programme and why it pushes up stock markets. And Ewan Cameron Watt, global chief investment strategist at BlackRock, explains in the most clear terms. It is all about portfolio substitution, of course. "If I buy a whole lot of bonds and give you cash, you have now have to invest that cash," he says. "You don't want to buy bonds because of [current] negative yields, so it forces you to buy riskier assets, which inflates the prices of things like equities." Simples.

     
  8.  
    06:25: Alpacas! Radio 5 live
    Alpacas

    Let's face it - alpacas are a bit weird. But farming the cuddly critters appears to appeal to some who want to escape the rat race, alpaca farmer Mary-Jo Smith tells Wake Up to Money. She says alpaca wool is strong, luxurious and "just amazing to wear". The British Alpaca Society holds its annual show in Telford this weekend.

     
  9.  
    06:15: Insurers v banks Radio 5 live

    Aviva shares ended 7% higher yesterday and Ewen Cameron Watt, chief investment strategist at BlackRock, tells Wake Up to Money it is no surprise that insurers are doing better than banks. He says operating conditions for banks are getting tougher, but some insurers are opting to join forces.

     
  10.  
    06:05: Rangers FC
    A general view of the Ibrox Stadium, in Glasgow,

    It's a big day for Rangers FC as the club holds an emergency meeting where Dave King hopes to oust the board. However, there are question marks over King - who wants to become chairman - because of his convictions in South Africa for tax offences.

     
  11.  
    06:03: Matthew West Business Reporter

    Happy Friday everyone. Don't forget you can get in touch by email at bizlivepage@bbc.co.uk or via twitter @bbcbusiness.

     
  12.  
    06:00: It's Friday Chris Johnston Business Reporter

    Good morning and welcome to the last day of the working week. US unemployment figures are set to dominate the day and are out at 13:30. We'll bring you the reaction to those numbers and all the day's other business news as well.

     

Features

  • Cartoon of women chatting on the metroChat wagon

    The interesting things you hear in a women-only carriage


  • Replica of a cargo boxSpecial delivery

    The man who posted himself to the other side of the world


  • Woman wearing a niqab in Raqqa (31 March 2014)'Run for your life'

    How IS fighter's tip-off led to narrow escape for Syrian woman


  • Target practice for Lithuanian troopsBaltic shiver

    Europe editor Katya Adler on the alarm at Russian muscle-flexing


From BBC Capital

Programmes

  • A robotClick Watch

    The latest in robotics including software that can design electronics to solve problems

Try our new site and tell us what you think. Learn more
Take me there

Copyright © 2015 BBC. The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.