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Manchester United expects further record revenues despite difficult start under Jose Mourinho

United's accounts for the 2018 financial year show rising revenues but a fall in earnings and profits

Mark Critchley
Tuesday 25 September 2018 14:51 BST
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Banner flown over Manchester United - Burnley game calling Ed Woodward a 'specialist at failure'

Manchester United expect another year of record-breaking revenues at Old Trafford despite a difficult start to the Premier League season under Jose Mourinho.

United’s results for the most recent financial year were released in full on Tuesday, with revenues rising to £590million for the 12-month period ending 30 June 2018 – an increase of 1.5 per cent on the previous year.

However, United’s early elimination from last season’s Champions League at the round of 16 adversely affected earnings and profits, which fell by 11.4 per cent to £177.1m and 45.4 per cent to £44.1m respectively.

United's exit at the hands of Sevilla had an adverse impact on broadcasting and matchday revenue streams in the second half of the season, with fewer home games in the latter part of the season.

This was somewhat offset by an improved Premier League performance. Last season’s second-place finish earned the club an additional £10m in broadcasting revenue when compared to the 2016-17 campaign.

Mourinho’s side currently sit seventh in the table after a mixed set of opening results but, even so, the club estimates another year of record-breaking revenues, falling between £615m and £630m.

Manchester United 2018/19 Premier League profile

“Everyone at the club is working tirelessly to add to Manchester United’s 66 and Jose’s 25 trophies,” Ed Woodward, United’s executive vice-chairman, said in a statement. “That is what our passionate fans and our history demands.

“We are committed to our philosophy of blending top academy graduates with world class players and are proud that, once again, last season we had more academy graduate minutes on the pitch than any other Premier League club.

“Our increased revenue expectation for the year demonstrates our continued strong long-term financial performance which underpins everything we do and allows us to compete for top talent in an increasingly competitive transfer market.”

The club’s accounts revealed that £295.9m was paid to employees – an increase of £32.4m – due to “player salary uplifts related to participation in the UEFA Champions League”.

Woodward held a conference call with investors shortly after the announcement of United’s results, though only had to field questions from one investor on the subject of shirt sponsorship and broadcasting rights.

Asked whether the club’s sleeve deal with manufacturer Kohler could lead to other sponsorship elsewhere on the shirt, Woodward said: “We are somewhat restricted by Premier League rules, FA rules in some competitions and Uefa with regard to when we play in European competitions.

Mourinho and Woodward did not see eye-to-eye over transfers this summer

“We cannot unilaterally decide to put another brand on our shirt. There are wider opportunities we can look at off the shirt and we continue to do that.”

On the pending sales of Premier League broadcasting rights, Woodward said: “Things have not quite finished. There are still some international deals to be finished. While domestic down a little bit, single digits, we expect international to allow the whole pot to go up by an amount that will at least result in an increase in the revenue.

“We can’t really guide on how much but hearing about continued strong interest around the world in our international rights.”

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