Under pressure: Some United fans remain opposed to the
Glazer family
Reason to be cheerful? Manchester United have reduced
their debt
Manchester United’s gross debt was reduced to
£359.7million after the club’s owners ‘retired’ a further
£62.6million-worth of bonds during the first financial
quarter.
A 32.4 per cent increase in sponsorship revenues,
underpinned by that massive shirt deal with Chevrolet, contributed
to commercial revenues rising by 24 per cent to £43million over the
quarter and an overall profit of £20.5million.
United estimate overall income will reach £350million and
£360million over the entire financial year to June 30,
2013.
In the last quarter alone, United entered into 10
sponsorship arrangements, including that incredible £357million
deal with General Motors for the Chevrolet logo to be worn on their
shirts for seven seasons from 2014.
That eye-boggling sum persuaded United to buy-out the
present deal with DHL for United’s training kit, which will now
come to an end at the climax of this season.
'Manchester United had a record first quarter driven by
our commercial operation, which continues to experience extremely
strong global revenue growth in new media & mobile, retail
merchandising & sponsorship,; said United executive
vice-chairman Ed Woodward.
'The team has also made a strong start to the 12/13 season
- currently 1st place in the Premier League and 1st place (and
undefeated) in our Champions League Group.'
United confirmed the 'exceptional item' of £3.1million
related to professional advisor fees in connection with the
IPO.
This sum will be seized on by critics of the Glazer
family, who continue to point to the massive sums incurred by the
club as a direct result of their controversial leveraged takeover
in 2005.
Yet United now appear set on a campaign to maximise
commercial revenues.
They have opened an office in Hong Kong and confirmed
staff costs had risen to £40.3 million 'primarily due to growth in
commercial headcount'.
Reverse: United bought out the deal with DHL to sponsor
the training kit
United also confirmed they received £1.3million
due to their players being selected for Euro
2012.
United's broadcast revenues have dipped substantially by
37.4 per cent, although most of this is being put down to the fact
the Red Devils played only one home Champions League game during
the period concerned compared to two 12 months ago.
And, as United have already qualified for the knock-out
stages of the competition compared to their catastrophic group
stage exit last term, further rises in revenue will be
anticipated.
It also seems United pocketed around £2million as a result
of Old Trafford being an Olympic venue given a 13.3 per cent rise
in matchday revenue to £19.6million.