Premier League: Manchester United make record revenue
Manchester United have announced record annual revenue, rising by 13.4% to £363.2million for the year to June 30, 2013.
Last Updated: 18/09/13 1:32pm
With new deals being announced on almost a weekly basis, it is no surprise that commercial revenues have risen a huge 29.7% to £152.5m for the year ended June 30, 2013.
It is the most significant rise in the 13.4% overall increase in turnover to a club record of £363.2m. The club's debt has fallen by 10.9% to £389.2million.
The adjusted profit for the period is £17.2m.
Wages have risen 11.6% to £180.5m, partly as a result of the club taking on more staff to work on its new digital operation, but also an increase in player salaries.
United have reported a rise in sponsorship revenue alone of 44.1% to £90.9m.
However, broadcast revenue dipped 2.3% to £101.6m as United gained only a 25% share of Champions League revenue paid to England's four competing clubs last season, due to a second-place finish behind Manchester City in the previous campaign.
An increase in matchday revenues of 10.5% to £109.1m was mainly due to Old Trafford being a host Olympic venue, while the club confirmed "exceptional items" costs of £6.2m were partly due to costs incurred with the flotation in New York, but also contracts of coaching staff - Mike Phelan, Rene Meulensteen and Eric Steele - being paid up following the summer departure of manager Sir Alex Ferguson.
It was also stated in the results that net finance increased £21.3m to £70.8m, primarily due to a £22m premium paid to buy back some of its bonds, which will save interest payments in future years.
The impressive commercial results come as United are explaining their troublesome transfer window to supporters, with communications director Phil Townsend insisting funds were available to Moyes, even though he only ended up signing Marouane Fellaini from Everton.
"The club has always backed the manager in the transfer market, as Sir Alex (Ferguson) has said on many occasions and it will continue to do so," said Townsend in a letter to fans who wrote to United for an explanation of what appeared an underperforming transfer window.
"The club has demonstrated its belief in, and commitment to, David Moyes through the award of a six-year contract.
"Allowing him to shape the future Manchester United team is a long term project not an eight-week panic.
"He must be given time to assess his new squad and come to his own decisions on which players he feels will strengthen it.
"Additional resources were there to add to that but it was not possible to agree with other clubs for the right players to leave.
"The key point there is that the players we buy have to be the right ones for Manchester United; not just any player."
The news was revealed on the same day the club announced regional sponsorship agreements with Commercial Bank of Qatar and Emirates NBD Bank.
United have signed five-year deals with the banking organisations that will see them become official financial services partners in Qatar and United Arab Emirates respectively.
As part of the separate agreements, both organisations will have the rights to produce United-branded credit, debit and prepaid cards. In addition, Emirates NBD Bank will also market its own Manchester United savings account.