ManU "has become the first British football club to earn more than half a billion pounds in a year, buoyed by large increases in television revenues that have helped its finances soar despite less-than-stellar performances on the pitch," according to Murad Ahmed of the FINANCIAL TIMES. Reporting full-year results for the 12 months ending June 30, the football club said that revenues were up 30% to £515.3M ($687M), while operating profits had grown more than 100% to £68.9M ($91.8M). Broadcasting revenues accounted for £140.1M ($186.8M), representing a 30% increase year on year, primarily due to its participation in the UEFA Champions League last season.
But despite failing to qualify for Europe’s "most prestigious club tournament" again this season, ManU Exec Vice Chair Ed Woodward said that it was "on target to achieve record revenues in 2017, even without a contribution from the Champions League" (
FT, 9/12). The BBC's Bill Wilson reported in a year when it won the FA Cup, the Old Trafford club "also signed 14 sponsorship deals, and saw commercial, matchday and TV revenues all rise." The Premier League giants "also revealed operating profits" of £68.9M, and adjusted core earnings of £191.9M ($256M), both also records. Woodward said, "This strong financial performance has enabled us to invest in our squad, team management and facilities to position us to challenge for, and win, trophies in the coming years."
Net debt increased by £5.7M ($7.6M) on the previous year, to £260.9M ($348M), which the club said "was primarily due to the impact of foreign exchange rate movements" on its U.S.-denominated debt (
BBC, 9/12). SKY SPORTS' Michael Kelleher wrote ManU paid £8.4M ($11.1M) in compensation to fire former Manager Louis Van Gaal "and members of his coaching staff." The Dutchman "was dismissed in May after two years in charge despite winning the FA Cup" because ManU failed to qualify for the lucrative Champions League. The club's wage bill rose to £232.2M ($309.5M), an increase of £29.6M ($39.4M), or 14.6%, over the prior year (
SKY SPORTS, 9/12). In London, Jack Gaughan wrote ManU has backed new Manager Jose Mourinho "heavily during his first summer in charge with the world-record capture of Paul Pogba from Juventus." That signing supplemented the arrivals of £30M ($39.9M) Eric Bailly from Villarreal and Henrikh Mkhitaryan from Borussia Dortmund for £26M ($34.6M).
Zlatan Ibrahimovic "also penned a one-year contract at Old Trafford" worth in excess of £200,000 ($266,700) a week. Only rival Man City "spent more this summer" (
DAILY MAIL, 9/12). In London, Jamie Jackson wrote ManU have been forced to write off £6.7M ($8.9M) for Bastian Schweinsteiger following Mourinho’s "exclusion of the World Cup winner from his squad." According to the club’s latest accounts, the sum "is the value of Schweinsteiger, who was told by the manager he would train with junior players." Schweinsteiger stressed toward the end of the transfer window that ManU "would be his last club in Europe." The former Germany captain was omitted from ManU’s Europa League squad but "was included in the Premier League group, although that was compulsory under league guidelines" (
GUARDIAN, 9/12).
