Home » Manchester United announce record £146.4m profit but where is the money?

Manchester United announce record £146.4m profit but where is the money?

by Sam Peoples

Manchester United have announced a record turnover of £363.2 million for the year ending 30 June 2013.

The turnover is a 13.4% increase on the year ending 30 June 2012 and commercial revenue increased by 29.7% to £152.5 million.

The increased commercial revenue would have come as a consequence of a flurry of new sponsorship deals that the club agreed including selling the naming rights to United’s Carrington training complex as well as a host of others. In total, United signed 20 sponsorship deals in the year ending 30 June 2013. Match day revenue also increased 10.5% to £109.1 million.

Profits of £146.4 million were recorded and the gross debt of the club decreased 10.9% to £389.2 million from £436.9 million. United now have a cash reserve of £94.4 million.

Speaking about the improved turnover, Ed Woodward said: “We are very proud of our results for fiscal 2013.

“It has been a little over a year since our IPO and in that time we have delivered on our targets and objectives. Our commercial business continues to be a very powerful engine of growth enabling the team to continue to be successful.

“We won our 20th English League title last season and are delighted to have David Moyes lead our football team into a new and exciting chapter. We look forward to a successful 2013/14, both on and off the pitch.”

And the amount of money coming into the club is only set to increase as a new Nike deal is expected to take the turnover above £420 million next year.

Despite United making a phenomenal amount of profit, the club was not willing to meet Ander Herrera‘s release clause of £31 million amongst a host of other players we missed out on. The club may be a global corporate powerhouse but it seems Woodward was more pre-occupied in securing lucrative sponsorship deals than improving the squad this summer.

For the full breakdown of our end of year accounts, click here.

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