Man United announce record revenue
Manchester United have announced record levels of income for the 2013 fiscal year and project another huge growth in their earnings over the next 12 months.
The Premier League champions had a total of £363.2 million in revenue, an increase of £42 million from the previous year, and profits of £146.4 million -- a 528% rise on their previous year, when they made £23 million.
And they believe that their income could reach £420-430 million next year, assuming they finish in the top three of the Premier League and reach the last eight of the Champions League.
Vice-chairman Ed Woodward said: "We are very proud of our results for fiscal 2013. It has been a little over a year since our IPO and in that time we have delivered on our targets and objectives.
"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’s Earnings Before Interest, Taxes, Depreciation, and Amortization (adjusted EBITDA) for the last 12 months was £108.6 million and they estimate that could rise to £128-133 million for the 2014 fiscal year. They already have a cash balance of £94 million.
While it shows the size of the funds available to manager Moyes and the success of the club’s commercial department in striking up partnerships and making sponsorship deals, United also spent £70 million on net finance costs -- primarily concerning paying off and refinancing the debts loaded on the club by the owners, the Glazer family, in their 2005 takeover.
United’s commercial revenue rose £35 million from £117 million to £152 million in the 2012-13 financial year, a growth of 42%.
Matchday revenue also rose significantly, from £98.7 million to £109.1 million. However, operating costs rose 8.8% to £310.3 million and staff costs went up 11.6% to £180.5 million.
United’s debt was reduced by £47 million to £389.2 million. United sold 10% of the shares in the club on the New York Stock Exchange in an IPO (Initial Public Offering) in August 2012.