Manchester United hit record revenue levels following commercial success
Remind me again why Manchester United only brought in one expensive signing in the summer transfer window?
It certainly wasn’t because cash-flow has been a problem, just look at these figures.
On Wednesday Manchester United announced that for the 12 months to June they reached record revenue figures, with over $540 million reaching the Premier League club. Earlier this year the club was also floated on the New York Stock Exchange.
American businessmen the Glazer family put the increase down to a huge rise in commercial revenue, as sponsorship deals went through the roof. Record merchandising and product licensing also saw revenue lines sky-rocket, as United made a net profit of $215 million.
Manchester United’s executive vice chairman Ed Woodward was delighted with the results after he took over from previous incumbent David Gill.
“We are very proud of our results,” Woodward said. “Our commercial business continues to be a very powerful engine of growth enabling the team to continue to be successful. We won our 20th English League title last season and are delighted to have David Moyes lead our football team into a new and exciting chapter. We look forward to a successful 2013-14, both on and off the pitch.”
United have certainly been busy off the field in the past 12 months, as sponsorship for all kinds of things began to pop up. We had ‘Mr. Potato’ as their official snack-partner, Russian airline Aeroflot is now involved, and US car manufacture Chevrolet who will be the club’s shirt sponsor for next season. Some have laughed at the huge number of sponsorship deals United have signed in the past few months, but it’s having the desired outcome... so why not cash in? Every other club or sports franchise in the world would do the same if they had United’s allure and attractiveness from a business standpoint.
In all, commercial revenue is up 30 percent and as United continue to become a global success story off the pitch, they will hope some of that success continues to happen on the pitch, too.
But does all this financial success put more or less pressure on David Moyes to succeed in his first season in charge at Old Trafford?
I think it actually helps him out. Moyes shouldn’t bat an eyelid at these figures. The only thing he should know is that United are in a terrific position in terms of future outlook, and although the club has had plenty of debt piled onto it by the Glazers, Manchester United could easily recoup that with the correct business plan in place.
Moyes’ job is easy. Focus on the soccer. Everything else will look after itself. And, commercially, it’s doing more than that... it’s thriving.