ManU Reports 30% Revenue Increase For Q3 Thanks To New Sponsorships
EPL club Manchester United recorded a 30% "increase in revenues in the third quarter on the back of more sponsorship deals," but the club also saw its wage bill rise by 25% "from player signings and wage demands," according to Roger Blitz of the FINANCIAL TIMES. ManU reported revenues of $142.5M (all figures U.S.) in "the three months to March 31, and adjusted its full-year projections" up $15.5M to $559.6M. It also "notched up its full-year projection for adjusted earnings before interest, tax, depreciation and amortisation" by $4.7M to $171.1M, after "lifting third-quarter operating profit" 22.5% to $38.9M. ManU's sponsorship deals were up more than 50% to $32.7M, "partly the result of a 10 per cent uplift from the sale of branded merchandise kit by supplier Nike." The period also "saw the signing of deals with two financial services companies and a social gaming operator." ManU's broadcast revenues "rose 28.4 per cent on the same quarter last year because it progressed further in the Uefa Champions League than last season." Similarly, match day revenues were up 27.8% due to "three extra cup games at Old Trafford than in the same period of the 2011/12 season" (FT.com, 5/2).
UNCHARTERED TERRITORY: In London, James Ducker notes ManU has "identified about 80 untapped markets in which to strike sponsorship deals, as the club step up the expanse of their burgeoning commercial operation." In the "eight years since the Glazer family’s takeover at Old Trafford, commercial income has soared" from $74.3M to $178M for the "nine months to March 31 and is likely to break" the $233.2M "barrier for the first time by the end of their financial year on June 30." However, ManU believes that it has "yet to scratch the surface in commercial terms, with such revenues -- up 31.9 per cent on the corresponding three months last year -- expected to account for more than 50 per cent of turnover within the next two years." Exec Vice Chair Ed Woodward said that there was “'no update' as far as talks with Nike over the renegotiation of their existing kit deal." Woodward also "declined to offer a breakdown of the value of the eight-year sponsorship deal struck last month with Aon, which will give the insurance giant naming rights to the Carrington training complex and sponsorship of the training kit and overseas tours from July 1" (LONDON TIMES, 5/3).