Manchester United have registered a record revenue for the second successive year, confirm clubs officially released 2016-17 accounts.
The club earned a revenue of $784.3 million during the 2016-17 financial year, registering a record operating profit of $109 million. The results are a major plus for United, who finished at the 6th position on the Premier League table.
The club also announced that the its overall debt in May had gone up to $493.95 million after the US dollar had strengthened against the pound post-Brexit.
Commercial revenue for the year was $373.8 million, an increase of $9.77 million, or 2.7%, over the prior year.
Sponsorship revenue was $220.2million, an increase of $2.98 million, or 1.4%, over the prior year.
Retail, Merchandising, Apparel & Product Licensing revenue was $141.11 million, an increase of $9.09 million, or 6.9%, over the prior year, primarily due to a full year contribution from the adidas agreement, compared to only 11 months in the prior year, plus growth in Megastore revenue.
Mobile & Content revenue was $12.42 million, a decrease of $2.29 million, or -15.6%, over the prior year.
Ed Woodward, United’s executive vice-chairman, said, “We concluded a successful 2016/17 season with a total of three trophies and a return to Champions League football.”
“The year saw us set record revenues of over $784.12 million and achieve a record EBITDA [Earnings before interest, tax, depreciation and amortization] of $269.65 million.”
United’s trophy successes came against the clubs staff costs jumping by 13.5 per cent, to $355.6 million, thanks largely to the big-money arrivals of Zlatan Ibrahimovic, Henrikh Mkhitaryan and, in particular, Paul Pogba.
Woodward also announced their revenue projections for 2017-18, projecting that it will land at somewhere between $775 million and $790 m.
Woodward had proffered in May that the full year financial performance would be better than what had been expected, and has backed that up with a pre-tax profit of $77 million.
“We are pleased with the investment in our squad and look forward to an exciting season.
Manchester United saw this boost largely because of the domestic broadcasting deal signed by the Premier League with Sky and BT that raised income at all 20 clubs in England’s top division. The club earned $261.96 m in broadcasting revenues, up more than 38.2 per cent from the previous season.
The television deal, combined with new commercial and sponsorship contracts, helped Manchester United to displace Spain’s Real Madrid as the world’s wealthiest club in terms of revenues, according to Deloitte, the consultancy.