Manchester United have become the first British football club to see income break the £500 million barrier, as they
generated a staggering income of £515.3m for the year ending June 30, despite a poor season on the pitch.
In world football, only Barcelona, who announced revenues of £570 million in July, have ever earned more than United did last season.
And United expect revenue to continue to grow even without Champions League football this season. United forecast that revenue will be between £530m and £540m in 2017 with money from the Premier League’s new broadcast deal set to land.
It is thanks largely to United’s world-record £750m kit deal with adidas and a relentless commercial drive which has seen them sign 14 lucrative deals with new sponsors that is driving United’s record breaking revenue.
When United signed their record deal with adidas, they took back a number of rights held by previous kit-maker Nike. Those included the return of the Megastore and allowed them to sign lucrative new deals with external retail companies, including Columbia and New Era. Commercial revenue rocketed from £196.9m to £268.3m while retail went up 207.9 per cent to £65.7m.
Executive vice-chairman Ed Woodward said:
‘Our (results) reflect the continued underlying strength of the business and the club is on target to achieve record revenues in 2017, even without the Champions League.
“This strong financial performance has enabled us to invest in our squad, team management and facilities to position us to challenge for, and win, trophies in the coming years.’
MAN UNITED KEY FIGURES
- United posted a record total revenue of £515.3million, becoming the first British club to earn more than half a billion pounds in a single year.
- The club’s total revenue is predicted to rise to between £530m and £540m next year, despite missing out on Champions League qualification.
- Operating profit for 2015-16 was £68.6m, compared to £31.6m the previous year.
- United’s commercial revenue rose 36.3 per cent to £268.3m in a year that the agreement with Adidas came into play, helping retail revenues rise 207.9 per cent.
- Broadcasting revenue for the year increased by 30.4 per cent to £140.4m, primarily due to their participation in UEFA competitions.
- United’s net debt increased 2.2 per cent to £260.9m, with that £5.7m change pinned on the impact of exchange rate movements on their United States dollar denominated debt.
- Total operating expenses increased by 12.8 per cent to £436.6m and employee benefit expenses were £232.2m, an increase of 14.6 per cent primarily thanks to contract extensions and a rise in salaries due to Champions League participation.
- The exit of manager Louis van Gaal and his coaching staff cost the club £8.4m in compensation.
- United wrote off £6.7m as midfielder Bastian Schweinsteiger is ‘no longer considered to be a member of the first team playing squad’.