Man Utd Reveals Latest Financial Figures
Manchester United has revealed its financial results for the second half of 2014, where revenue fell by 12.2% to £194.4m.
The club, one of the most popular sports teams in the world, lost out on payments from Nike as a result of failing to qualify for the Uefa Champions League.
The falls in broadcast and match-day revenues therefore meant profits for the six-month period decreased by 52%, at £8.9m, although the club added that the decline was offset by a 23% increase in sponsorship revenues to £35.8m.
The Old Trafford side announced two new sponsorship deals in the last three months, with drinks company Chi in Nigeria and Chinese neutraceutical group IVC (Aland).
Ed Woodward, executive vice chairman commented: “The recently announced Premier League broadcasting rights package for 2017-19, representing an increase just over 70%, once again demonstrates that we are part of the top football league in the world.
“Notwithstanding no European football this season, our Revenues and EBITDA remain strong and demonstrate the underlying strength of our business model, with commercial revenues up year over year.
“On the pitch, the team is well positioned to challenge for a top four finish in the Premier League and we look forward to the rest of the season.”
Shares are up 13% on the year, but are still 12% below the high they reached in the middle of 2014.
The club added that it expects to hit its target revenues for the whole year of between £385m and £395m, around £40m below last year.
Manchester United will also benefit heavily from its share of the £5.1bn for the recent broadcasting rights deal agreed with Sky and BT from next year.
