Manchester United reveal record revenue as Adidas kit deal triggers 186 per cent rise in merchandise income
Manchester United's earnings rocketed over 100 per cent to a new record thanks to its lucrative shirt sponsorship deal with Adidas and a return to the Champions League.
The figures
Revenues at Old Trafford hit £123.6m in the quarter ended 30 September – a 39.3 per cent rise from £88.7m a year ago.
Earnings before interest, tax, depreciation and amortisation jumped a massive 104.9 per cent to £41.6m.
The club now says it is on course to record earnings between £165m and £175m by the end of the financial year.
The club's return to the Champions League boosted the club's coffers through increased gate receipts and broadcasting income from the additional two matches it's held so far. Broadcasting revenue rose 64.3 per cent in the year to £27.6m while matchday revenue jumped 64.2 per cent to £24.8m.
Net debt now stands at £286.2m, a rise of 5.3 per cent.
Why it's interesting
Yet despite returning to Europe's elite under the guidance of Louis van Gaal, it is the commercial arm of the club which contributes to the majority of its soaring revenues. Commercial revenue rose to £71.2m, a 25.4 per cent increase compared to the same period last year.
The club's new kit deal with Adidas contributed to a 185.9 per cent increase in merchandising revenues to £22.3m.
Adidas heralded the success of the United kit launch in their own financial results last week, while United chairman Ed Woodward today told investors that Memphis Depay's United shirt was the third highest-selling of the summer behind Lionel Messi and Cristiano Ronaldo.
What executive vice chairman Ed Woodward said:
Our record first quarter revenues and EBITDA demonstrate the continued strength of our businesses. We are delighted with the early progress made in licensing. During the quarter we entered into an agreement with HCL to be our digital transformation partner, which will enable us to connect with our fans around the world in innovative ways and further strengthen and grow our commercial revenues.
In short
And the Reds go marching on, on, on: A record quarter puts United on the path to becoming the first Premier League club to record revenue in excess of £500m by the end of the financial year.