Force India Unveils New Car UEFA Unwilling To Discuss RB Hungary Withdraws 2024 Games Bid China Plans 50,000 Academies By 2025 AFL May Seek New AFLW TV Deal AFC, Allianz Announce Partnership Six Nations CEO Denies Georgia Admission Executive Transactions Aberdeen Stadium Bid Hits Setback RFU Execs Out-Earning FA Counterparts
SBD Global/September 19, 2013/FinancePrint All
ManU has "announced record annual revenue" for the last financial year, according to Martin Booth of the LONDON TIMES. Total revenue for the 12 months to the end of June was up 13.4% to £362.2M. Sponsorship revenue alone "was up" by 44.1% to £90.9M and profit for the period "leapt to" £146.4M -- an increase of more than 500%. Matchday revenue increased to £109.1M, a rise of 9%, but this "was helped by Old Trafford staging matches during the 2012 Olympics and hosting five domestic cup games compared to one in the previous 12 months." The club now employes 793 people, 80 more than a year earlier, "because of the continued expansion of its commercial business." As a result, staffing costs "have gone up" to £180.5M, a rise of 11.6% (LONDON TIMES, 9/18).
GLAZED OVER: In London, David Conn reported ManU spent £71M in '12-13 "financing the cost of the Glazer family's debt-laden takeover of the club." Investment analyst Andy Green said that the £71M finance costs take to £680M the total cost to ManU in interest, fees, bank charges and debt repayments of the Glazers' '05 takeover of the club. ManU has "agreed huge sponsorship deals divided by types of product" -- car (Chevrolet), wine (Casillero del Diablo), betting (Bwin), airline (Aeroflot), snack (Mister Potato) "and so on" -- and by "geographical regions of the world." ManU Exec Vice Chair Edward Woodward stressed that commercial income from such sponsorships is now 42% of ManU's total at £153M, "far exceeding" the £102M from broadcasting. Woodward said, "We are very proud of our fiscal 2013. It has been a little over a year since our [flotation in New York] and we have delivered on our targets and objectives" (GUARDIAN, 9/18). In London, Roger Blitz reported the club's gross debt stands at £389.2M, down 10.9% from last year. Its "adjusted ebitda for the year rose" 18.6% to £108.6M (FINANCIAL TIMES, 9/18).
'TROUBLESOME' TRANSFER WINDOW: The PA's Simon Stone reported broadcast revenue, however, "has dipped" 2.3% to £101.6M as ManU gained only a 25% share of Champions League revenue paid to England's four competing clubs last season. The "impressive commercial results" come as ManU is explaining its "troublesome transfer window to supporters," with Communications Dir Phil Townsend "insisting funds were available to Moyes," even though he only ended up signing Marouane Fellaini from Everton. In a letter to fans who wrote to ManU for an explanation of "what appeared to be a shambolic transfer window," Townsend wrote, "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" (PA, 9/18).
Premiership rugby side Leicester has announced an operating profit of just under £400,000 ($638,600) "over a 12-month period to June this year." It "follows an operating loss" of £1M in '11-12, while Tigers' latest turnover figure stands at £19M ($31M), an increase of £1.7M from '12 (BELFAST TELEGRAPH, 9/18). LEICESTERSHIRE MERCURY reported season ticket sales exceeded expectations, reaching an "all-time high" of more than 14,700 in a Welford Road stadium that holds 24,000 people. There "is a good feeling on the club's board that Tigers -- who won their 10th title last May -- will be able to maintain that pattern in the years to come." A statement said, "The board has continued confidence in the ability to maintain growth in the future despite testing times in world markets" (LEICESTERSHIRE MERCURY, 9/18).