Manchester United annual accounts reveal rising revenues and surging profits.
Manchester United has enjoyed greater success with its finances than it has on the pitch recently, with the club’s annual accounts revealing rising revenues and surging profits it was reported in the Daily Telegraph
Documents lodged with Companies House show Manchester United Ltd had revenues of £254m in the year to the end of June 2016, some 25pc higher than during the previous year.
However, pre-tax profits were even more impressive, surging 73pc tp £141m after a mammoth sponsorship deal the club scored with Adidas kicked in
Analysis of the accounts show Manchester United received £72.7m from the German sportswear giant after they signed a 10-year deal worth £750m.
The agreement - described as a “a global technical sponsorship and dual-branded licensing deal” started in the 2015-16 season, and is believed to be the biggest kit deal in sport.
Adidas replaced Nike as a sponsor after US-based business - which had been linked with the club since 2002 - pulled out of talks about continuing the relationship because it thought Manchester United was demanding too much money.
Also giving a massive boost to the club’s finances was car group General Motors, kicking in £52.2m over the year to have its Chevrolet brand on players’ shirts.
The deal shows the global attraction of Manchester United: Chevrolet ceased to exist as a retail brand in UK in 2015 because of a “challenging business model”. Instead the car company has focused on promoting its Opel and Vauxhall brands in Europe, though Chevrolet continues to exist in other parts of the world.
Also filed with Companies House were the accounts of Red Football Limited, the immediate parent of Manchester United Ltd, and which covers the ancillary businesses based around football. Its finances showed a similar stellar performance - again boosted by sponsorship deals - with revenue rising from £395m to £515m and a profit of £49m, reversing a £2.3m loss the year before.
The parent group paid a £20m dividend during the year, up from a zero payout last time round.