MANCHESTER UTD PUBLISH QUARTERLY FINANCIAL RESULTS

27 May 2022

By: Sport Industry Group

Premier League giants Manchester United has revealed significant losses and growing debts for the third quarter of its financial year, following a season in which the Red Devils missed out on Champions League football.

In the release of its latest quarterly accounts, the Old Trafford side, which is listed on the New York Stock Exchange, reported an operating loss of £21.8m for the third quarter, compared to £21.6m for the prior year, with broadcast revenue down by 12% to £51.5m. The club’s net debt was £495.7m, up 11.8% on YoY.

However, in better news, the club’s total revenue for the three months ending 31st March was £152.8m, up 29.2% from £118.3m YoY. The club earned an additional £34.1m in matchday revenue in this period, with the Covid-19 pandemic having limited matchday revenue to just £1.6m in the third quarter of 2021.

Commercial income for the period stood at £65.6m, an increase of 12.9% compared to last year (£58.1m). The club attributed the growth to a 9.4% uptick in sponsorship revenue to £39.2m. The confirmation of several new deals within this period contributed to the numbers.  The club agreed a new training kit sponsorship agreement with blockchain company Tezos and renewed its agreement with personal care brand Remington. New deals with hygiene brand Ecolab and sustainable fuel provider the Renewable Energy Group were also confirmed. Recent renewals with Marriott, and Maui Jim are also understood to be reflected in the results.

Despite a number of the significant signings in the last summer transfer window, that included Cristiano Ronaldo, Manchester United suffered a disappointing season. The 58 points achieved was the lowest total for the club in the history of the Premier League and meant they would compete in the second-tier European competition next season - the Europa League.

Richard Arnold, who took over as Chief Executive of Manchester United from Ed Woodward earlier this year, commented, "It has clearly been a disappointing season for the men's first team.

"Resilience and high standards are core values for Manchester United, and we are determined to achieve better results next season and beyond."

 

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