|HK office of ManU propels commercial revenue, club reports annual profits of £17.2 million
Manchester United football club, owned by the billionaire American Glazer family, (pictured, Malcolm Glazer) said today a regional sales office in Hong Kong which it set up a year ago, made an “excellent contribution,’’ to commercial revenues, “concluding multiple deals.’’ Commercial revenues at the New York Stock Exchange-listed club, accounted for 42 percent of all revenue for the 12 months ended June 30.
The club also reported today earnings of £17.2 million for the 2013 fiscal year, up by 282.2 percent.
The club forecast revenue of between £420 million and £430 million in the fiscal year 2014, assuming ManU finishes third in the English Premier League and reaches the quarter-finals of the UEFA Champions League, and domestic cups.
Commercial revenues grew 29.7 percent to a record £152.5 million, the club said in a statement. Commercial revenues were lifted by seven global sponsorship partnerships including a world record shirt deal with Chevrolet, four regional sponsorship partnerships, and nine financial services and telecom agreements, the club said.
In the fourth quarter, commercial revenue increased 34.9 percent to £37.9 million.
Broadcast revenues for the year fell by 2.3 percent to £101.6 million.
Manchester United generated to £38.6 million from retail merchandising, and apparel and product licensing. This, represented a growth of 14.2 percent for the year.
But costs also increased at the club. Overall operating expenses grew by 8.8 percent to £310.3 million.
Staff costs were higher by 11.6 percent to £180.5 million mainly because of the expansion in the commercial business, new player signings and higher wages and bonuses for footballers. The club has 793 employees. – The Standard