Man Utd revenues boosted by TV and sponsorship deals

Manchester United forward Wayne Rooney (2L) vies with Fulham's Dutch defender John Heitinga the match between Manchester United and Fulham

Rising income at Manchester United will be spent on new players to boost their lacklustre performance.

The reigning Premier League champions said revenues rose 11.6% from a year earlier to £122.9m in the final three months of 2013.

Commercial sales were up by 18.8% on the same period in 2012, while broadcasting revenues grew by 18.7%.

Revenue from sponsorship deals jumped by nearly 40%, the club said, with six new deals being activated.

Ed Woodward, Executive Vice Chairman said on a conference call: "Over the medium term, we would expect annual net player [capital expenditure] to track higher than our historical average as we invest in our squad."

The increases in revenues came despite United enduring a tough season, their first under new manager David Moyes.

The team are currently seventh in the league and could miss out on a place in the UEFA Champions League for the first time since 1995.

The club is forecasting revenue for the current season of between £420m and £430m, up from £363m last season.

'Record quarter'

Mr Woodward said: "We once again achieved a record revenue quarter with strong contributions from our commercial and broadcasting businesses despite the current league position, which everyone from the team manager down has acknowledged is disappointing."

Even if the club did miss out on a Champions League place, Mr Woodward said he believed there was enough new business in the pipeline to compensate, including improved Premier League TV contracts and new sponsorship deals.

Prof Chris Brady, from the Centre for Sports Business at Salford University, said: "If I was an investor, I'd be saying: your forecasts were based on being third in the Premier League, the finals of the Champions League and in the quarter-finals of the FA Cup.

"Well, they're not in the Premier League, they're out of the FA Cup and it's not looking good for the Champions League either."

The club, owned by the US Glazer family, said they were in talks with several sportswear companies, including existing supplier Nike, about replacing their current contract that expires next year.

On an adjusted basis, before interest and tax, earnings were up 1.6% at £51m.

More on This Story

From other news sites

* May require registration or subscription

The BBC is not responsible for the content of external Internet sites

More Business stories


BBC Business Live

    GDP FIGURES 06:11: Radio 5 live

    "The consumer is doing a lot of the heavy lifting," in the economy, says economist Alan Clarke of Scotiabank on 5 live. How, when wages are stagnant? The housing market, of course. As the value of homes rises, people are prepared to save less and spend more without earning more. House prices won't go up at the current rate forever, though, he says.

    GDP FIGURES 06:03: Radio 5 live

    CBI director-general, John Cridland is still on 5 live. The recovery is currently investment-led rather than export-led. Sterling's strength isn't helping but isn't wholly choking things off either, he says.

    GDP FIGURES 06:01: Radio 5 live

    Director-General of the Confederation of British Industry John Cridland expects growth of 0.8% in the second quarter, he tells 5 live. "We are getting some balance in the recovery, like a boxer in the boxing ring finding his feet," he says. Companies are investing, finally, he says, and that's crucial. This is what will add to wages.

    06:00: Howard Mustoe Business reporter

    Good morning! Please get in touch via email on or via twitter @BBCBusiness

    06:00: Matthew West Business Reporter

    Good morning. So, let's catch up from last night: Amazon had a tough second quarter, as did General Motors. And the International Monetary Fund downgraded its global economic growth forecast. Here at home it's as good as confirmed that the UK is richer than it has ever been (you literally have never had it so good, you lucky, lucky people). Do you feel richer than you did last year? How about last week? Or yesterday even? We'll find out at 09:30 with second quarter GDP, so stay with us.



BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.