UK Premier League football club Manchester United has declared a 63% rise in sponsorship revenue, which has helped the club to achieve record revenues of £98.5m for the first quarter of its fiscal year, a rise of 29%.
The BBC reported on Thursday that Manchester United’s rise in revenue follows a leap in sponsorship income, as well as a 41% increase in earnings from broadcasting revenues of £19.3m. Revenues for the whole year are expected to be between £420 and £430m
Manchester United, which is controlled by the American Glazer family, has reportedly signed 12 new global and regional sponsorship deals with companies such as Russian airline Aeroflot and soft drinks company PepsiCo. Its latest broadcast rights deal is with BT, which has agreed to pay £900m to broadcast European club football for three years.
Ed Woodward, Manchester United executive vice-chairman, was quoted as saying: “This deal represents a meaningful increase over the current arrangement, which should translate into higher broadcasting revenue for the participating clubs.”
In addition, licensing of clothing and other products brought in £10.7m, an increase of 13.8% compared to the same period in 2012. The club also received a one-off receipt of £1.3m in respect of its players who were on international duty at the Euro 2012 tournament.
During the quarter, staff costs increased by 31% to £52.9m. This rise was said to be partly because some players’ wages were paid only for part of last year, but now have been fully included in the three-month period. It also reflects wage rises and bonuses paid as a result of growth in the club’s commercial business.
According to Woodward, the club’s unique approach to its commercial business will continue to ensure future growth.