The English football club Manchester United released a report about its financial performance during the third quarter of 2015. According to the released data, Manchester United revenue jumped to £123.6 million. In other words, an increase of 39.3% was noticed, as compared to last year’s results.
The impressive revenue was attributed to the contract between Adidas and the football club and the boosted sales of Adidas replica kit in particular. Those who keep themselves familiar with the matter know that back in 2014, a major contract between Adidas and the football club was signed. It is worth £750 million and according to the clauses it contains, Adidas has the responsibility of manufacturing Man United kits for 10 seasons.
The Champions League has also played an important role in the record revenue generation.
According to preliminary prognosis, the yearly revenue is expected to be in the range between £500 million and £510 million. In case these predictions are materialized, Manchester United can take pride in having achieved yet another milestone. No other football club has ever exceeded the £500 million revenue before.
Currently, Manchester United is in fourth place in the Premier League. As for its main opponent – Manchester City, the latter is two points ahead. The Red Devils are also the leaders in the Champions League group table.
Although the club did not succeed in qualifying for the premier club competition of the Old Continent, its fabulous return to Champions League was considered a giant step towards the broadcast revenues.
Ed Woodward, the current executive vice-chairman of Man United, was reached for a comment and was quoted saying that the financial performance of the football club over the last quarter was an indication for “the continued strength of our businesses”.
Overall, the third quarter of 2015 was really successful for the club. Along with the dividends brought about by the Adidas deal, Man United also joined forces with the popular footwear manufacturer Sbenu. The deals with Marathon Bet and HCL also made the headlines during the registered period.
A considerable decline in profits was reported during the quarterly results announcement, though. A downfall of £3.9 million was reported as compared to last year’s profit that amounted to £8.9 million. The decline of 43.8% YOY was due to the significant loss on player trading. Man United lost roughly £7.4 million on player trading. The sale of Javier Hernandez has partially compensated for the loss.
Exactly a year ago, a profit of £18.3 million was reported but it was largely due to the sale of Danny Welbeck.
As far as EBITDA is concerned, an impressive jump of more than 100% was announced, which was regarded as an indication of the “underlying profitability” of the club.