Manchester United reveals record revenues in past year
Commercial earnings drive Premier League winners' income up 13.4% to £363m
NEW sponsorship deals and product licensing have boosted Manchester United's revenues to record heights in the last 12 months.
In the past year, the club's revenues jumped 13.4 per cent to £363m, giving Manchester United a net profit of £146m.
According to the BBC, this was primarily driven by commercial revenues, boosted by new sponsorship deals, merchandising and product licensing. Their sponsorship deals, including one with US car-maker Chevrolet, boosted the club's commercial revenues by 30% in the past financial year, which now account for £153m - 42 per cent - of the club's total income. The remainder comes from television rights, worth £102m, and match-day revenue, which brings in £109m.
Richard Hunter, head of equities at Hargreaves Lansdown Stockbrokers, said the club's on-field success last season was reflected in its financial results. "Apart from the kudos and indirect income associated with winning the Premier League - not least of which is maintaining the strength of the global brand - the merchandising machine at the company's disposal is firing on all cylinders," he said.
United's record revenues still fall short of the amount earned by Madrid, who are the only football club to have surpassed the €500m (£414.19) revenue mark.
United, controlled by the American Glazer family, have predicted that in the year to June 2014 the club's revenues will rise by 18.5 per cent to between £420m and £430m, reports Reuters. However, this is contingent on the team finishing at least third in the English Premier League and reaching the quarter-finals of Europe's Champions League. ·