In addition to the handfuls of trophies won by the venerable Scot, Sir Alex Ferguson, who stepped down as Manchester United PLC (NYSE:MANU)’s manager following the completion of last year’s competitions, Sir Alex also leaves behind a legacy of record earnings for the New York traded football giant.
Manchester United revenues
The club reported record revenues of £363.2 million ($579.9 million). Manchester United PLC (NYSE:MANU) saw annual revenues jump 13.4 percent, boosted by the team’s commercial success, while sponsorship revenue was up 44.1 percent to £90.9 million. Merchandising revenue was 14.2 percent higher to £38.6 million for the year. While traded in New York, Manchester United’s home in England calls for sales numbers to be reported in English sterling.
The Red Devils recently signed a record shirt sponsorship deal with American car maker Chevrolet, as well as additional sponsorship deals with Commercial Bank of Qatar and Emirates NBD Bank. As a result, net profit rose an almost unbelievable 528.3 percent to hit £146.4 million.
Manchester United loss
Manchester United PLC (NYSE:MANU) ran away with the English Premier League last year after losing it in the dying moments of the season the year prior to Manchester rivals, Manchester City.
“There is direct kudos from winning the premier league,” Richard Hunter, head of UK equities at Hargreaves Landsdowne, told CNBC.
“Football purists might have been disappointed by their performance in the European Champions League, but nonetheless they remain one of the world’s top clubs and this attracts a new generation of fans and sponsorship.”
United began its quest for European glory yesterday with a 4-2 victory over Bayern Leverkusen yesterday evening—a match that saw want-away Wayne Rooney score his 200th goal for the club.
Manchester United commercial success
“The club will need further investment in players and the reason why revenues increased was mainly because of commercial success. I am sitting here asking where the revenues are going to come from in the future,” Michael Jarman, chief market strategist at H2O Markets told CNBC.
“It has been a little over a year since our IPO and in that time we have delivered on our targets and objectives. Our commercial business continues to be a very powerful engine of growth enabling the team to continue to be successful,” Ed Woodward, executive vice chairman said in a statement.
Now it’s up to new coach David Moyes and his players to add to the stocks gains by adding to its trophy collection on the pitch.