Manchester United announce record financial results with huge increase in commercial revenues
Club's debt falls by 10.9 per cent to £389.2m
Wednesday 18 September 2013
Manchester United's latest annual results confirm the club's rapid commercial expansion.
With new deals being announced on almost a weekly basis, it is no surprise commercial revenues have risen a staggering 29.7% to £152.5million for the year ended June 30, 2013.
It is the most significant rise in an overall 13.4% increase in turnover to a club record of £363.2million. The club's debt has fallen by 10.9% to £389.2million.
The adjusted profit for the period is £17.2million.
Wages have risen 11.6% to £180.5million, partly as a result of the club taking on more staff to work on its new digital operation, but also an increase in player salaries.
United have reported a rise in sponsorship revenue alone of 44.1% to £90.9million.
However, broadcast revenue has dipped 2.3% to £101.6million as United gained only a 25% share of Champions League revenue paid to England's four competing clubs in last season, due to a second-place finish behind Manchester City in the previous campaign.
An increase in matchday revenues of 10.5% to £109.1million was mainly due to Old Trafford being a host Olympic venue.
The club confirmed "exceptional items" costs of £6.2million were partly due to costs incurred with the flotation in New York, but also contracts of coaching staff - Mike Phelan, Rene Meulensteen and Eric Steele - being paid up following the summer departure of manager Sir Alex Ferguson.
It was also stated in the results than net finance increased £21.3 million to £70.8 million primarily due to a £22million premium paid to buy back some of its bonds, which will save interest payments in future years.
Nevertheless, the figure increases the overall cost of the highly-leveraged takeover by the Glazer family in 2005 which some supporters remain vehemently opposed to, even though both Ferguson and his successor David Moyes have spoken out in favour of United's American owners.
The impressive commercial results come as United are explaining their troublesome transfer window to supporters, with communications director Phil Townsend insisting funds were available to Moyes, even though he only ended up signing Marouane Fellaini from Everton.
"The club has always backed the manager in the transfer market, as Sir Alex (Ferguson) has said on many occasions and it will continue to do so," said Townsend in a letter to fans who wrote to United for an explanation of what appeared to be a shambolic transfer window.
"The club has demonstrated its belief in, and commitment to, David Moyes through the award of a six-year contract.
"Allowing him to shape the future Manchester United team is a long term project not an eight-week panic.
"He must be given time to assess his new squad and come to his own decisions on which players he feels will strengthen it.
"Additional resources were there to add to that but it was not possible to agree with other clubs for the right players to leave.
"The key point there is that the players we buy have to be the right ones for Manchester United; not just any player."
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