The Europa League, UEFA’s secondary club competition, is typically less lucrative than the prestigious Champions League.
Despite experiencing a minor dip in broadcasting revenue due to competing in the Europa League, Manchester United managed to significantly boost their commercial and matchday income, effectively offsetting the decrease.
In the financial year ending on June 30, 2023, Manchester United successfully generated a total revenue of £648.4 million. One notable cost-saving measure was a reduction in the wage bill, which saw a reduction of £52.8 million.
This reduction was primarily due to automatic clauses in player contracts triggered by the club’s failure to qualify for the Champions League.
Even with lower player salaries and record-breaking revenues, the club still reported a modest operating loss of £11.2 million.
It’s worth noting that no dividend was reported as being received by the Glazer family in the current financial year, in contrast to the £33.6 million that was paid out in the previous year.
Manchester United has high hopes for the 2023/24 financial year and anticipates another record-breaking revenue performance, potentially reaching up to £680 million.
Several key factors contribute to this optimism. First, a lucrative new shirt sponsorship deal with the Qualcomm brand Snapdragon is set to commence in the coming summer. Additionally, a renewal of the club’s kit deal with adidas will take effect from 2025.
Furthermore, almost a year after the Glazer family signaled their intention to explore ‘strategic alternatives,’ the club is in the process of welcoming Sir Jim Ratcliffe as a minority owner with a 25% stake and an active role.
As the billionaire owner of INEOS, he successfully outbid Sheikh Jassim of Qatar. Ratcliffe is planning to revamp and enhance the club’s sporting department as one of his major projects.
