Debt-ridden Manchester United have once again proved that when it comes to selling themselves they are the shrewdest operators around.
In the report of their first quarter financial results United posted record revenue of £98.5million.
Sponsorship was up by a whopping 62.6% and commercial revenue had also increased by 40% – with the club raking in a total of £59.9million.
Ed Woodward, the club’s Executive Vice Chairman said: “We are pleased to have achieved another record first quarter, driven by the strength of our commercial business and increased broadcasting revenues.
“Our unique approach to the commercial business will continue to drive future growth.
“We are also excited by the continuing rise in the value of sports content, evidenced, amongst other things, by the recently announced BT deal for the UK rights to broadcast the Champions League and Europa League matches for three seasons from 2015/16.”
The Glazer family, who own the club, have been widely criticized by fans for the amount of debt they incurred during their takeover in 2005.
However, United have continued to demonstrate an aggressive business strategy that has seen them acquire a multitude of sponsorship deals in recent years.
Richard Hunter, head of equities at Hargreaves Lansdown Stockbrokers, told the BBC: “Manchester United’s stuttering start to the domestic season is in stark contrast to its performance off the field.
“There are some causes for concern, such as the steep percentage rises in operating expenses generally, and staff costs in particular.”
Image courtesy of Xavoun, with thanks
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