Manchester United on course for huge financial success
The Red Devils have announced significant rises in income and profit for the three-month period ending in December 2012. The most important thing that should please all the Manchester United fans is the club’s gross debt has decreased by 16.1% since 30 June 2012 to £436.9 million.
Six new sponsorship deals have seen a commercial hike to 29% compared to the same period in 2011 but the wage bill has increased to more than 10% in the 2012-13 financial year, amounting to £160 million.
The Old Trafford club became the first sports team in the world with a $3 billion valuation. The club’s stock has outperformed the S&P 500, as a result of which it has pushed up the club’s enterprise value to $3.3 billion (debts included), which is the highest value for any team in the world.
Ed Woodward, United’s executive vice-chairman said in a statement:
“Manchester United achieved record revenue… in the second quarter driven by our commercial operation, which continues to experience extremely strong growth particularly in sponsorship.
“Staff costs for the second quarter increased 14.2% year on year to £44.2 million, primarily due to new player signings, player wage increases and growth in commercial headcount.
“The six months year to date increase is 10.5% year on year to £84.5 million.”
The commercial revenue has increased by 14% taking the total income in that sector to £117.6 million that amounts to 37% of their total income, which is £320.3 million.
Further commercial growth is expected after United entered into a world-record £357 million deal with General Motors for Chervolet which will become their exclusive shirt sponsor for seven years starting in 2014/15.