Manchester United has announced record first quarter revenues of £98.5 million for the three months ending September 30, with the club benefiting from significantly enhanced sponsorship and media money.
Commercial revenue for the quarter was £59.9 million, an increase of £16.9 million, or 39.3%, over the prior year. Sponsorship revenue accounted for £45.2 million of this figure, an increase of £17.4 million, or 62.6%, primarily due to a significant increase from the club’s pre-season tour, higher renewals and the activation of two new global deals with Aeroflot and Bulova and an additional 10 regional sponsorships. Broadcasting revenue for the quarter was £19.3 million, an increase of £5.6 million, or 40.9%, due to increased revenue from the Premier League’s domestic and international rights agreements, one additional live Premier League and an increase in the share of UEFA Champions League fixed-pool distributions.
The Premier League champion reported a core profit (EBITDA) of £22 million in the quarter, an increase of 36% year-on-year, and welcomed the increased revenues that BT Sport’s new UEFA rights deal will bring. The pay-television broadcaster on Saturday secured the exclusive live rights to the Champions League and Europa League for the three seasons from 2015-16 in a deal worth £897 million. BT Sport’s expenditure is more than double that of current rights-holders BSkyB and ITV and is set to see English clubs’ earnings from the Champions League increase from between £15-20 million per season. Commenting on the financial results, United’s executive vice-chairman Ed Woodward said: “Our unique approach to the commercial business will continue to drive future growth. We are also excited by the continuing rise in the value of sports content, evidenced, amongst other things, by the recently announced BT deal for the UK rights to broadcast the Champions League and Europa League matches for three seasons from 2015-16. This deal represents a meaningful increase over the current arrangement, which should translate into higher broadcasting revenues for the participating clubs.”
United in September announced a profit of £108.6 million for the financial year ending June 30, 2013, with revenues rising 13.4% to a record level of £363.2 million – figures driven chiefly by the club’s prolific commercial department. United added that it expects revenue for the 2013-14 financial year to be between £420-430 million, with adjusted EBITDA at £128-133 million.