Manchester United set to reach record £500 million in revenue this year
Manchester United might not be having a great season in the Premier League but they are having a great one off it. The club are on course to reach the half-a-billion mark in revenue at the end this financial year.
No British club has ever reached this figure before. Manchester United will break that record with the club having its most profitable year yet. This figure is a surprise considering the Red Devils were knocked out of the Champions League earlier this season.
On Thursday, the club announced during the second quarter of the financial year that they are expected to earn around £500-510 million by the end of the fiscal year. Reports have shown that United have a transfer kitty worth around £121.6 million, which is an increase of £37 million from the last year
This will help create a buffer that can cushion the loss of revenue they might incur should they not make the Champions League next season. United are currently fifth in the table with their local rivals Manchester City six points above them occupying the final Champions League spot.
Manchester United have announced a second-quarter revenue of £133.8 million, a new record for the club. The value is a 26.6% increase on last year, but their debt has also seen a rise of 6 % which has taken their total debt to £322.1 million.
The Commercial earnings from their total in the second quarter is £66.1 million a massive 42.5% increase on the last year. TV money was expectedly also up by 31.3%, along with £1.6 increase in sponsorship deals which adds up to £37.4 million
The club’s Vice-chairman gave his statement about the club’s earnings saying, “Our strong commitment to investing in our squad, youth academy and the broader club are ultimately underpinned by our financial strength and the hard work and dedication of everyone at the club. Our solid results off the pitch help contribute to what remains our number one priority – success on the pitch”
The wages paid by the club for the second quarter was £55.7 million which saw an increase of 14.4% or £7.0 million over the whole year. The club explained the inflation stating it was “primarily due to renewals of existing player contracts, coupled with an uplift from participation in the Champions League”.
Louis Van Gaal has a tough task ahead of him to ensure Manchester United finish in the top 4 this season. They visit the Stadium of Light on Saturday to play low-lying Sunderland.