Some good financial results released by Manchester United today. The headline is that for the first time since the Glazer’s saddled the club with the debt from their takeover of the club, the club’ dent is down to £359.7m, down 17% on from a year earlier.
The reason for the decrease os that the Glazers used some of the proceeds of the club’s flotation on the New York Stock Exchange in August to pay off £62.6m of bonds.
Overall, United made a net profit of £20.5m, largely boosted by a tax credit, compared with a loss of £5m a year earlier.
“Manchester United had a record first quarter driven by our commercial operation, which continues to experience extremely strong global revenue growth in new media and mobile, retail merchandising and sponsorship,” said Ed Woodward, executive vice-chairman.
So for the three months that ended 30 September 2012, United saw total revenue rose 3.4% to £76.3m.
Once again the biggest driver in United’s revenue was the commercial side of the club as revenue from its commercial operations increased 24.3% to £43m, driven by 10 new sponsorship deals entered into during the quarter, including those with General Motors and sports betting company Bwin.
To put that £43 million in perspective, no other club in the Premier League has commercial revenue of close to £100 million. On a annualized basis, United’s commercial revenue would be £172 million, putting them right up their with Real Madrid and Barcelona.
Matchday revenues rose 13.3% to £19.6m, principally from one-off fees earned from staging nine Olympic Games football matches at Old Trafford.
United also said it made a £4.8m profit from player sales in the quarter, mainly from the moves of Dimitar Berbatov to Fulham and Ji-Sung Park to QPR.