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Red Devils reduce gross debt
Published : 14 Nov 2012 13:02:00
Man United's gross debt was cut to £359.7million during the first financial quarter after their owners 'retired' £62.6million-worth of bonds.
A 32.4% increase in sponsorship revenues, underpinned by a massive shirt deal with Chevrolet, contributed to commercial revenues rising by 24% to £43million over the quarter and an overall profit of £20.5million. United estimate overall income will reach between £350million and £360million over the entire financial year to June 30, 2013. The results are bound to receive a negative reaction from some fans groups, particularly as reports in the United States overnight indicated the club had to be forced to disclose greater information than they initially wanted when they launched their IPO in the summer.
But commercially, at least, the results underline how successful United have been. 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."