Record Revenue But Profit Falls At Man Utd
Manchester United has announced its latest financial figures, revealing record annual revenues – which have risen by 19% to £433.2m – despite profits falling dramatically by 84%.
However, the sharp fall in profits to £23.8m, from £146m a year ago was largely due to United’s owners cashing in a tax credit in the previous financial year.
The 84% fall in net income for the year to 30th June results in a total of £23.8m, down from £146m a year ago.
The football club, which has budgeted for a third place finish in the Barclays Premier League this season, will most likely see profits and revenues fall in 2015 after failing to qualify for the Champions League for the first time in 20 years.
The loss of Champions League football will not be felt financially until the next round of figures, but the total cost will likely end up at more than £50m.
The figures do not include the £150m investment in six new players made in the summer, including a new British transfer record for Angel Di Maria.
The club, majority-owned by the American Glazer family, said revenue increased 19% to £433.2m in the 2013-14 financial year, thanks to improved TV and sponsorship deals, but is now predicted to fall to between £385m and £395m.
In July, Manchester United announced a record breaking £750m 10-year shirt manufacturer sponsorship deal with Adidas, after Nike decided to end its association with the club at the end of the 2014/15 season.
Nike had been given a period of exclusivity to negotiate an extension with United and also retained the right to match any other offer, but the company decided against exercising either option, claiming the terms ‘did not represent good value for Nike’s shareholders.’
The new deal with Adidas dwarfs the previous record sponsorship, held by Champions League winners Real Madrid and their £31m-a-year deal with the same brand.
The results also revealed that David Moyes and his backroom staff received a total of £5.2m in compensation following the former Manchester United manager’s sacking in April after less than a year in the job.
