Manchester United see revenues and profits plummet

Manchester United’s total revenues fell by almost £40m in the 12 months ending June 30, despite them achieving record revenues through sponsorship.

While the club signed 11 sponsorship deals totalling £154.9m during the fiscal year, its total revenues plummeted from £433.2m in June 2014 to £395.2m at the same point this year, a drop of 8.8%.

Additionally, United’s adjusted profits saw a 89.2% decrease during the period, falling from £28.7m last year to just £3.1m in June 2015.

Although revenue from commercial sources rose by 4% to £196.9m, United’s broadcasting revenue dropped by 20.7% to £107.7m and matchday revenue by 16.2% to £90.6m.

Ed Woodward, Manchester United’s executive vice chairman, was positive about the club’s outlook. He said: “As we look to the new season, we are enthusiastic about our strong position, both on and off the pitch.

“In recent weeks we have further strengthened our squad with an exciting mix of experience and youth, qualified for the group stage of the UEFA Champions League, and seen an impressive launch of our partnership with adidas.”

United’s partnership with adidas, signed at the beginning of August, was the largest kit manufacturer deal in sports, totalling £750m over the next 10 years.

Elsewhere, the club’s gross debt increased by more than £60m to £411m, although United have attributed much of that increase to a strengthening US dollar over the course of the fiscal year.

Next year, Manchester United are expecting their revenue to hit between £500m and £510m, with an adjusted EBITDA of between £165m and £175m.

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