Manchester United posted record revenue of £648 million ($785 million at current exchange rates) for the fiscal year ending June 2023. It was an 11% increase over the previous season led by strong growth in the commercial and matchday division; the previous record was £627 million for the 2018-19 season.
However in the filing, the 20-time English soccer champions did not provide any update on its ongoing sale process, which kicked off 11 months ago when the Glazer family announced plans to seek “strategic alternatives.”
Commercial revenue—sponsorships and merchandise—led the way with £303 million ($367 million), up 17.5%, which was driven by new sponsor agreements and the team’s 2022 pre-season tour.
The commercial business will get a boost from a pair of recent deals. Last month, United signed a new sponsorship agreement with Qualcomm that will put the company’s Snapdragon brand on the front of the club’s jerseys, replacing TeamViewer. The deal will take effect for the 2024-25 season.
Terms of the contract were not released, but it will be the largest jersey deal in soccer, according to someone familiar with the agreement who was not authorized to speak publicly on the matter. The current top deal is Real Madrid’s agreement with Emirates, which is worth roughly $75 million a year.
This pact follows a 10-year renewal with Adidas to be the team’s kit manufacturer through 2035 in an agreement worth a minimum of £900 million ($1.1 billion). It is the largest deal in the Premier League and on par with what Real and Barcelona make.
Broadcast revenue fell 3% to £209 million ($253 million) as the club played in the Europa League, instead of the Champions League, in the 2022-23 season. United qualified for the Champions League this year with its third place finish in the Premier League during the 2022-23 season. It dropped its first two Champions League matches in group play before rebounding with a 1-0 win over Copenhagen on Tuesday.
Matchday revenue jumped 23% to £136 million ($165 million), fueled by seven more home games at Old Trafford across all competitions. The club said it sold 2.4 million tickets, topping the previous record set in 2016-17. Season tickets for the current season sold out at the fastest rate ever with its lowest ever churn, and there are more than 150,000 people on the season ticket waiting list. Matchday revenue for the women’s team was three times the previous year.
The team’s wage bill fell £53 million to £331 million ($401 million), but it was still not enough to turn a net profit with the team posting a loss of £29 million ($35 million). Man United reported an “adjusted EBITDA” of £155 million ($187 million), nearly double the prior year.
For the 2024 fiscal year, the club projects revenue of £650 million to £680 million and adjusted EBITDA between £140 million and £165 million.
Shares in the publicly-traded stock sank last week after reports emerged that that Qatari Sheikh Jassim bin Hamad Al Thani had pulled his offer to buy the club, and British billionaire Jim Ratcliffe was wrapping up negotiations to secure a minority in the team. Sheikh Jassim’s bid was for 100% of the team.
Ratcliffe is currently worth $16.1 billion, according to Bloomberg, and is the richest person in the U.K. He made his fortune as the founder of chemical giant INEOS, where he is still the chairman and largest shareholder.