Manchester United announce record income from sponsorship despite Champions League failure
Manchester United has announced record income from sponsorship deals but a decrease in match day and broadcast revenues for the 2015 fiscal year this despite missing out on the Champions League last season.
United was expected to reveal a sharp decrease in money earned from TV revenue after a season without European monies.
However, while the club has confirmed a drop of more than 20 percent in broadcast money to 107.7 million pounds ($169M) and a 16.2 percent decrease in matchday income to £90.6 million, it remains in a healthy financial position thanks largely to new sponsorship deals.
The club has enjoyed a record £154.9 million sponsorship revenue - an increase of 14.1 percent - due in the main to a total of 11 new lucrative partnerships, while a decrease of 5.5 percent in the total wage bill has softened the blow of a lack of European football.
A mammoth 10-year contract with kit sponsor Adidas, worth £75 million per year, has also contributed to a commercial revenue of £196.6 million - a 4 percent increase on 2014.
Though United's total revenue for 2015 has dropped from £432 million to £395 million, a growth of 10 percent in the most recent quarter underlines that income is on the up, while net debt has now dropped to £255 million despite a 20 percent rise in gross debt to £411 million as a result of the strengthening of the U.S. dollar.
Crucially, the 20-time Premier League champion has also confirmed that it expects total revenue of between £500 million and £510 million for the 2016 fiscal year, which would be a club record.
Executive vice-chairman Ed Woodward said: "As we look to the new season, we are enthusiastic about our strong position, both on and off the pitch. In recent weeks we have further strengthened our squad with an exciting mix of experience and youth, qualified for the group stage of the Champions League, and seen an impressive launch of our partnership with Adidas.
"Our record revenue and EBITDA guidance for 2016 reflects the underlying strength of our business and our confidence in its continued growth."
United moved into second in the Premier League table after beating Southampton on Sunday.