United’s Revenue Rises, Along With Net Debt
Manchester United FC registered a 7.3% year-on-year increase in revenue in its latest quarter, although the Premier League club’s net debt rose to £494.8m by the end of last year.
United’s financial figures for the three months until 31st December 2021 detailed a rise in revenue to £185.4m, up from £172.8m in the same period in 2020. Commercial revenue for the quarter was £64.4m, an increase of 2.9%.
However, United’s operating profit was down significantly year-on-year, from £48.5m in 2020 to £5.4m in 2021. The club’s net debt also increased markedly, by 8.6% year-on-year to £494.8m.
Sponsorship revenue was £35.2m, a decrease of 6.9%, which United said was primarily due to the expiration of its training kit deal at the end of May 2021.
Retail, merchandising, apparel and product licensing revenue was £29.2m, an increase of £4.4m, due to increased Megastore and e-commerce income.
United stated that in contrast to the prior year quarter, the Megastore remained open to customers over the latest three-month period and also benefited from home games being played in front of full capacity crowds at Old Trafford. E-commerce revenue growth was driven by increased website traffic, supported by the impact of new player signings.
Broadcast revenue for the quarter was £86.4m, a decrease of £22.3m (20.5%) because there were four fewer home and away games across all competitions over the three months.
Matchday revenue for the quarter was up significantly to £34.6m, an increase of £33.1m, with all eight home games being played in front of a full capacity crowd. All 10 home games in the prior year quarter were played behind closed doors.
Richard Arnold, Manchester United’s Chief Executive Officer, said, “Everyone associated with Manchester United should have belief in the opportunities that lie ahead of us, both on the pitch and in the way we engage and serve our fans.
“We have a clear vision and we are implementing a strategy to win with an empowered leadership team to drive that forward. We will foster a culture of excellence through a world-class football environment, while strengthening the role of fans at the heart of the club and harnessing the power of Manchester United to make a positive impact on people, the environment and society.
“All of this will be supported by a sustainable operating model that ensures the club is strong for the present and secure for the future.”
Cliff Baty, Chief Financial Officer, added, “Results reflect the continued strength of our sponsorship revenues, supported by record-breaking digital fan engagement, in addition to the return of more normalised matchday operations. We look forward with optimism to the remainder of the fiscal year.”
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