Manchester United finances shrug off on-field disappointments
Even without Champions League football - revenues spiked by 30% during the past 12 months...13:30 Monday 12 September 2016, 13:30 12 Sep 2016
While Manchester United had a mixed 2014/15 season on the field business is still booming off of it.
Its overall revenues grew by 30% as the club's commercial activities offset the financial shortfall suffered when Louis van Gaal's final season failed to secure Champions League football.
The publically-listed club brought in £515.3m while net income rose to £36.4m - that was up from a £0.9m loss 12 months previously.
Under 'exceptional items,' £6.7m is recorded which relates to "a registrations' impairment charge regarding a reduction in the carrying value of a player no longer considered to be a member of the first team playing squad" - this seems to be the club effectively writing off the value of out-of-favour midfielder Bastian Schweinsteiger who is not part of José Mourinho's future plans.
Income from retail and merchandising enjoyed a 207.9% increase - this was mainly a result of a new deal with Adidas which commenced in August 2015.
Its full-year results also show a 70% increase in the value of Premier League Domestic live broadcasting rights - and 40% increase in the international rights.
Over the summer, the English club completed the signing of French midfielder Paul Pogba from Juventus in a record-breaking deal worth up to €110m. José Mourinho and Swedish striker Zlatan Ibrahimovic also arrived during the summer months.
2016 is expected to be the first season in which the club's commercial income surpasses the combined value of matchday and broadcast revenue.
14 Sponsorship deals announced during the fiscal year - during the 2015/16 season.
Ed Woodward, Executive Vice Chairman commented on the results:
"Our record Fiscal 2016 financial performance reflects the continued underlying strength of the business and the Club is on target to achieve record revenues in 2017, even without a contribution from the Champions League. This strong financial performance has enabled us to invest in our squad, team management and facilities to position us to challenge for, and win, trophies in the coming years."
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