Manchester United closing financial gap on European rivals

Premier League champions Manchester United have reported a 29% revenue rise for the first three months of its financial year.

It follows a 63% rise in sponsorship income, after the club signed 12 new sponsorship deals in the first quarter. Total revenue for the period was £98.5 million.

Increased earnings from TV deals also helped the club close the gap on Europe’s wealthiest clubs Real Madrid and Barcelona, and revenues are predicted to be close to £430 million for the whole year.

Controlled by the US-based Glazer family, Man Utd have signed lucrative deals with global firms such as Russian airline Aeroflot, Pepsi, Commercial Bank Qatar, and MBNA, as well as deals augmenting their digital offering.

Broadcasting revenues increased 40.9% due to the new FA Premier League domestic and international TV rights agreements.

Manchester United executive vice chairman Ed Woodward said: “We are pleased to have achieved another record first quarter, driven by the strength of our commercial business and increased broadcasting revenues. Our unique approach to the commercial business will continue to drive future growth.”

Woodward also endorsed the new BT deal for the UK rights to broadcast the Champions League and Europa League matches for three seasons from 2015/16, saying “the deal represents a meaningful increase over the current arrangement, which should translate into higher broadcasting revenues for the participating clubs.”

Other financial highlights include a rise of 31%, to £52.9m, of staff costs for the quarter, with the rise partly because some players’ wages were paid only for part of last year, but now have been fully included in the three-month period.

The increase also reflects wage rises and bonuses paid because of the growth of the club’s commercial business.

It also received a one-off receipt of £1.3m in respect of its players who were on international duty at the Euro 2012 tournament.