Manchester United has announced a profit of £108.6 million for the financial year ending June 30, 2013, with the English Premier League champion’s revenues rising 13.4% to a record level of £363.2 million – figures driven chiefly by the club’s prolific commercial department.
United’s profit, excluding items such as interest and tax payments, came during a season in which it enjoyed greater success on the pitch, including regaining the league title. United last year paid for its comparatively poor season on the pitch in 2011-12 after reporting a 3.3% fall in revenues to £320.3 million for the year. In its latest set of figures, the club said commercial revenue for the year increased 29.7% to £152.5 million driven by several new sponsorship partners, an increase in profit share from Nike, new mobile and financial services agreements, and higher renewals from existing partners. Sponsorship revenue was up 44.1% to £90.9 million. United concluded seven global sponsorship partnerships including a world record shirt deal with Chevrolet, along with four regional sponsorship partnerships and nine financial services and telecom agreements.
However, broadcast revenues for the year decreased 2.3% to £101.6 million primarily as a result of the market pool element of United’s UEFA Champions League distributions being based on a 25% share for finishing as runners-up in the Premier League in the preceding season compared to a 40% share in fiscal 2012 for finishing the preceding Premier League season as champion. Match day revenues for the year increased 10.5% to £109.1 million, as Old Trafford hosted a number of matches during the 2012 Olympic Games and had five home domestic cup fixtures compared to one in the previous financial year. United listed on the New York Stock Exchange last year, with its stock rising from a flotation price of US$14 to stand at $17.11 for a market capitalisation of $2.8 billion at close of trading on Wednesday. In a separate statement, United said it may seek to raise up to $400 million through fresh sales of shares although there was no time frame set for any fundraising. Commenting on the results, Manchester United executive vice-chairman Ed Woodward said: “We are very proud of our results for fiscal 2013. It has been a little over a year since our IPO and in that time we have delivered on our targets and objectives. Our commercial business continues to be a very powerful engine of growth enabling the team to continue to be successful.”
Looking ahead, United said that it expects the year ending June 30, 2014 to provide revenues of between £420 million to £430 million, with profits in the range of £128 million to £133 million. This assumes the team finishes third in the Premier League and reaches the quarter-finals of the Champions League and the domestic cups. United’s figures will be boosted next year through increased revenues garnered via the first season of the Premier League’s new broadcast rights deals with BSkyB and BT Sport. United is locked in a battle for global financial supremacy with Spanish giants Real Madrid and FC Barcelona. Barcelona announced on Tuesday that its revenue is projected to increase to Eur509 million this season, marking the first time the club has surpassed the Eur500 million threshold. Barcelona’s bitter rival, Real Madrid, generated more than Eur500 million in revenue in both 2011-12 and 2012-13. Earlier this month, Real said that turnover had increased by 1.3% to Eur520.9 million for the 2012-13 campaign, generating a net profit of Eur36.9 million.