ManU "put some distance" between itself and its "nearest rivals when it comes to Premier League wages" -- even if the spending "has not been reflected by performances on the pitch," according to Martyn Ziegler of the LONDON TIMES. The club’s annual report shows that the wage bill is close to breaking the £300M ($395.5M) mark for the first time; a 12.3% rise has taken it to £295.6M ($389.7M). ManU's closest rival in the "pay stakes" is Man City, whose salary bill is £259.6M ($342.3M) -- less than ManU paid the season before, when it was not in the Champions League. ManU is "struggling to match" Man City and other top Premier League sides "in terms of results on the pitch however," and is in seventh place in the table. In its annual report for '17-18, ManU said that the wage bill increase "was due to Champions League qualification bonuses." The arrival of Alexis Sánchez "is also understood to be a factor." Some reports claimed that Sánchez earns £500,000 ($659,200) a week, or £26M ($34.3M) a year, "though club insiders insist it is less than that" (LONDON TIMES, 9/25). In London, Murad Ahmed reported last season, ManU was knocked out of the Champions League in the round of 16. Adjusted earnings before interest, tax, depreciation and amortization fell 11.4%, however, to £177.1M ($233.5M), while operating profits fell 45.4% to £44.1M ($58.1M). The club projected revenues "would increase again this season" to between £615M ($811M) and £630M ($831M). This is "due to expected increases in income from new broadcasting rights deals in England and in Europe," as well as commercial partners "continuing to see the value in coining sponsorship deals with one of the world’s most famous clubs" (FINANCIAL TIMES, 9/25).
EYES ON THE PRIZE: In London, Jamie Jackson reported ManU last won the Premier League in '12-13. Exec Vice-Chair Ed Woodward "focused on the drive for silverware" when discussing the financial results through June. Woodward: "We are the biggest sports team in the world. That requires continued investment. Our aim is to win trophies, it is one of the reasons we hired [Manager] José Mourinho. Everyone at the club is working tirelessly to add to Manchester United’s 66 and José’s 25 trophies. That is what our passionate fans and our history demands. ... Our increased revenue expectation for the year demonstrates our continued strong long-term financial performance which underpins everything we do and allows us to compete for top talent in an increasingly competitive transfer market" (GUARDIAN, 9/25). In London, Mark Critchley reported Woodward held a conference call with investors and "only had to field questions from one investor on the subject of shirt sponsorship and broadcasting rights." Asked whether the club’s sleeve deal with manufacturer Kohler could "lead to other sponsorship elsewhere on the shirt," Woodward said, "We are somewhat restricted by Premier League rules, FA rules in some competitions and UEFA with regard to when we play in European competitions. We cannot unilaterally decide to put another brand on our shirt. There are wider opportunities we can look at off the shirt and we continue to do that." On the pending sale of EPL broadcasting rights, Woodward said, "Things have not quite finished. There are still some international deals to be finished. While domestic [is] down a little bit, single digits, we expect international to allow the whole pot to go up by an amount that will at least result in an increase in the revenue" (INDEPENDENT, 9/25).
THE RIPPLE EFFECT: In London, Liam Corless reported ManU's finances "have been negatively impacted" by Donald Trump's U.S. presidency. ManU's tax expense for the year was £63.4M ($83.6M), compared to just £17.3M the previous year. The "loftier charge" came as a result of U.S. tax reform introduced by Trump in Dec. '17 and means ManU's operating profit dropped from £80.8M during the previous 12 months to £44.1M (MANCHESTER EVENING NEWS, 9/25).
