Manchester United score record revenues on broadcasting deal
Trophy wins and 38% rise in rights income boost the world’s wealthiest football club
Record revenues: Manchester United’s Romelu Lukaku celebrates scoring the club’s third club against Everton at Old Trafford last Sunday. Photograph: Andrew Yates/Reuters.
Manchester United achieved record annual revenues last season, boosted by a new broadcasting deal for English football and trophy wins.
The team finished the 2016-17 season by winning the Europa League title and also won the League cup. It has started this season with a series of victories that has propelled it to joint top of the English Premier League table with Manchester City.
Revenues increased 12.8 per cent in the year to the end of June 2017, compared with the previous season to £581.2 million (€660.3m), its full-year accounts show.
Earnings before interest, tax, depreciation and amortisation increased more than 17 per cent to £199.8 million (€227m). Pre-tax profits also increased 7.7 per cent to £39.2 million (€44.5m).
The financial performance beat the club’s previous guidance provided in May this year, when it had projected annual revenues of £560 million (€636m) - £570 million (€647m) and ebitda (earnings before interest, taxes, depreciation and amortisation) of £185 million (€210m) - £195 million (€221m).
Manchester United has been boosted by a new £5.1 billion (€5.79bn) domestic broadcasting deal signed by the Premier League with Sky and BT that has raised income at all 20 clubs in England’s top division. The club earned £194.1 million (€220m) in broadcasting revenues, up more than 38.2 per cent from the previous season.
The television deal, allied with new commercial and sponsorship contracts, helped United to displace Spain’s Real Madrid as the world’s wealthiest club in terms of revenues, according to Deloitte, the consultancy.
The Europa League victory gave the British team entry into the Champions League, Europe’s elite club competition, which could provide a further boost from broadcasting, sponsorship and prize money. The club said it expected revenues to remain flat in its 2018 fiscal year, projected to be between £575 million (€653m) and £585 million (€664m).
Ed Woodward, Manchester United’s executive vice-chairman, said: “We concluded a successful 2016-17 season with a total of three trophies and a return to Champions League football . . . we are pleased with the investment in our squad and look forward to an exciting season.”
– (Copyright The Financial Times Limited 2017)