Manchester United posts record revenue, but performances hurt income
Manchester United posted record revenue of £590m for its full year today, receiving a £10m boost to its broadcasting income after finishing second in the Premier League last season.
But broadcasting revenue dropped in the fourth quarter after the team was knocked out of the Champions League by Sevilla in the round of 16 as the team's fortunes on the pitch affected the club's finances.
Increased salaries for players in the Champions League dented operating profits.
Matchday revenue, which accounts for just under a fifth of overall revenue, also dropped because the team’s early Champions League exit caused them to play five fewer home games.
However, sponsorship revenue grew one per cent to £173m, helped by seven new deals, including the club’s first shirt sleeve partnership with Kohler.
Executive vice chairman Ed Woodward said there was good competitive demand for shirt sleeve rights during the process, with the club taking longer than many others to announce a partnership.
He added: “Everyone at the club is working tirelessly to add to Manchester United’s 66 and Jose [Mourinho's] 25 trophies. That is what our passionate fans and our history demands.
“We are committed to our philosophy of blending top academy graduates with world class players and are proud that, once again, last season we had more academy graduate minutes on the pitch than any other Premier League club.
“Our increased revenue expectation for the year demonstrates our continued strong long-term financial performance which underpins everything we do and allows us to compete for top talent in an increasingly competitive transfer market.”