Manchester United's profits increase even after disappointing season performance

Manchester United’s profits have increased despite their poor performances.

Manchester United released a detailed summary of their financial revenue for the 2014 fiscal second quarter, and by the looks of it, the current Premier League champions’ profits are rising even after a disappointing campaign under manager David Moyes.

“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,” said executive Vice Chairman, Ed Woodward.

“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. We are also very pleased to have added a world class player in Juan Mata to our squad, who has already made a positive impact.”

Profit accounted for three months up to 31 December was £19.8 million, more than the previous £19 million that they had grossed. Their revenue income has seen an improvement of up to 12%.

The highlights as mentioned in the official report are:

• Commercial revenues of £42.3 million up 18.8% for the quarter and 30.0% for the year to date.
• Six new sponsorship deals activated in the second quarter – Unilever and Hong Kong Jockey Club (regional); Banif Bank (financial services); Fuji TV and SPOTV Korea (MUTV) and STC (mobile).
• Broadcasting revenues increased 18.7% for the quarter primarily due to the new FAPL domestic and international TV rights agreements.

According to Woodward, the club finances will keep improving even if the club fails to secure a place in the Champions League next season, and is expecting around £420m and £430m as their yearly revenue.