Manchester United announce UK£627.1m record revenues

English soccer giants forecast financial downturn next year.

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English soccer giants Manchester United have hit a record UK£627.1 million (US$780 million) in revenues for the year to July.

However, executive vice chairman Ed Woodward has predicted a downturn next year after the Premier League club missed out on qualification to European soccer’s elite club competition, the Uefa Champions League.

United, who are currently eighth in the Premier League table, forecast revenues of between UK£560 million (US$699.6 million) and UK£580 million (US$724.6 million), with an adjusted core profit between UK£155 million (US$193.6 million) and UK£165 million (US$206.1 million), down from the UK£185.8 million (US$232.2 million) filed in July 2019.

During the 2018/19 financial year, broadcast revenue soared by 18 per cent to UK£241.2 million (US$301.4 million), thanks to a new Uefa Champions League broadcasting deal, but commercial income was flat. This uptick resulted in an operating profit of UK£50 million (US$62.4 million).

The club also announced ten new or renewed global sponsorship deals during that period, taking their annual sponsorship revenue to UK£173 million (US$216.2 million). The club brought in less tour revenue, as a result of a shorter summer excursion, but that was offset by an increase in underlying sponsorship revenues.

Retail and merchandise income was UK£102.1 million (US$123.6 million), a decrease of £700,000 (US$875,000), or 0.7 per cent, over the prior year.

The biggest expenditure was staff wages for the year, where the club spent more half of its income on players. The annual wage bill up until July was UK£332.3 million (US$415.4 million), an increase of UK£36 million (US$45 million), or 12.3 per cent, on the previous year.

Woodward insisted United have a “primary objective of winning trophies” after announcing the record revenues.

Adding: “We remain focused on our plan of rebuilding the team and continuing to strengthen our youth system, in line with the philosophy of the club and the manager.”

The financial update also included a metric from measurement specialists Kantar, which put United’s total number of fans and followers globally at 1.1 billion.

Manchester United have hit a record UK£627.1 million (US$780 million) in revenues for the year to July

English soccer giants Manchester United have hit a record UK£627.1 million (US$780 million) in revenues for the year to July.

However, executive vice chairman Ed Woodward has predicted a downturn next year after the Premier League club missed out on qualification to European soccer’s elite club competition, the Uefa Champions League.

United, who are currently eighth in the Premier League table, forecast revenues of between UK£560 million (US$699.6 million) and UK£580 million (US$724.6 million), with an adjusted core profit between UK£155 million (US$193.6 million) and UK£165 million (US$206.1 million), down from the UK£185.8 million (US$232.2 million) filed in July 2019.

During the 2018/19 financial year, broadcast revenue soared by 18 per cent to UK£241.2 million (US$301.4 million), thanks to a new Uefa Champions League broadcasting deal, but commercial income was flat. This uptick resulted in an operating profit of UK£50 million (US$62.4 million).

The club also announced ten new or renewed global sponsorship deals during that period, taking their annual sponsorship revenue to UK£173 million (US$216.2 million). The club brought in less tour revenue, as a result of a shorter summer excursion, but that was offset by an increase in underlying sponsorship revenues.

Retail and merchandise income was UK£102.1 million (US$123.6 million), a decrease of £700,000 (US$875,000), or 0.7 per cent, over the prior year.

The biggest expenditure was staff wages for the year, where the club spent more half of its income on players. The annual wage bill up until July was UK£332.3 million (US$415.4 million), an increase of UK£36 million (US$45 million), or 12.3 per cent, on the previous year.

Woodward insisted United have a “primary objective of winning trophies” after announcing the record revenues.

Adding: “We remain focused on our plan of rebuilding the team and continuing to strengthen our youth system, in line with the philosophy of the club and the manager.”

The financial update also included a metric from measurement specialists Kantar, which put United’s total number of fans and followers globally at 1.1 billion.