Manchester United scores a 74% profit rise in the second half

Manchester United netted profits of £22.3m over the last six months of 2012, and has seen a 26% rise in revenue to £78.6m. A surging run from the Red Devils.

by Rebecca Burn-Callander
Last Updated: 19 Aug 2013

Manchester United is already ranked as the third richest football club in the world but this latest set of results could bump the Premier League side yet further up the rankings.

In the last six months, the club has cut several lucrative sponsorship deals with a number of big-brand sponsors, from Nike to Aeon. True, broadcast revenues are slightly down for the second half, but the commercial arm of the business has more than made up for the shortfall, resulting in a 26.4% increase in revenue.

Manchester United has also announced that it has just signed a new eight-year sponsorship deal for its training kit. The club bought out the last two years of DHL's existing contract in order to snag a better deal. The identity of the new sponsor is still under wraps but will be revealed, 'in the near future', the club said in a statement.

This is all very good news for the club's owners, the Glazer family, which floated Man U. on the New York Stock Exchange last year at $14 a share. These shares are now trading at nearly $19, taking the company's valuation to more than $3bn.

And it's not just the business that's performing above expectations, Manchester United is currently topping the Premier League. It has also made the last 16 of the Champions League, drawing 1-1 with Real Madrid in the first leg of their match on Wednesday night.

Ed Woodward, Manchester United's executive vice chairman, says that the club's commercial operation has played a blinder in the second half, or rather, 'Manchester United achieved record revenue, driven by our commercial operation, which continues to experience extremely strong growth particularly in sponsorship'.

However, Alex Ferguson's side still has debts of £366.6m on the balance sheet. Staff costs have risen more than 10% – mainly because of wage increases and new player signings. Just snaring Robin van Persie from Arsenal cost the club £24m.

'Staff costs for the second quarter increased 14.2% year on year to £44.2 million, primarily due to new player signings, player wage increases and growth in commercial headcount,' said the club. 'The six months year to date increase is 10.5% year on year to £84.5 million.'

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