English Premier League club Manchester United has reported a $ 4.9 million loss for the period between January-March, compared to a $ 17.7 million profit in the same period last year. The loss can be attributed to higher contract expenditure and operating expenses.
However, the revenue during the same period increased 3 per cent to $ 165 million. United have a Europa league final with Dutch club Ajax FC on 24 May which could help them secure a place in the Champions league for the next spell.
The ‘Red Devils’ club has a kit-wear contract with Adidas that allows for a 30 per cent slash in the sponsorship deal if the club fails to reach Champions League in consecutive seasons. Broadcast revenues were up 12.9 per cent at $ 40 million and Commercial revenues were slightly higher.
United are expected to generate around $20- 25 million from decent performances in the Europa League. The club is expecting an additional $9 million due to FA cup victory last season and Europa final this year. This can lead United’s revenue more than $ 700 million and profit between somewhere around $ 240-250 million. The club achieved a record profit of $ 248 million last year.
Manchester United executive vice-chairman Ed Woodward told BBC, "We are forecasting better full-year financial performance than expected and as such have raised our revenue and profit guidance for the year.”
Manchester United is one of the biggest clubs in world football in terms of revenue and signed two sponsorship deals with transportation network company Uber and Singapore-based e-commerce service Aladdin Street during the quarter.
BW Reporters
The author is a correspondent with BW Businessworld with keen interest in HR and employee welfare.
