Despite the club enduring its worst ever start to a Premier League season, Manchester United have recorded commercial income of more than £42million – a 30% increase for the year.
Figures released today show that the club is continuing to be financially successful, with United posting a pre-tax profit of £19.8million for the three months to December 31, 2013.
Executive vice-chairman Ed Woodward admitted today that while on-field matters have been disenchanting, he is pleased with the club’s financial performance.
“We once again achieved a record revenue quarter with strong contributions from our commercial and broadcasting businesses despite the current league position, which everyone from the team manager down has acknowledged is disappointing,” he said.
“We continue to see meaningful opportunities to grow our commercial business and the popularity of football on TV is leading to continued broadcasting revenue growth – all of which bodes well for the long-term stability and financial strength of our business.”
While broadcasting revenue for the second quarter was recorded at £46.9million – an increase of £7.4 million – the Red Devils’ struggles on the pitch are reflected by a drop in match-day revenue, which fell by £1.3million to £33.7million.
Despite this set-back the club completed six new sponsorship deals during the quarter and have plans in the pipeline to strike more deals in the coming months.
The report comes as good news for the club after share prices hit a 52-week low on the New York Stock Exchange.
The price drop has coincided with five defeats in nine games and elimination from both domestic cup competitions, while their chances of defending their 20th title have all but evaporated.
The champions currently sit seventh in the Premier League, having dropped 34 points already this season – a record that does not reflect kindly on new manager David Moyes.
In their present form the Old Trafford outfit are set to miss out on the lucrative Champions League spots for the first time since 1995-96, an outcome which could thwart their attempts to attract top-class players in the summer.
The club have never finished lower than third in the 21 years since the Premier League began.
Picture courtesy of edwin.11 via Flickr, with thanks
