Manchester United seems to be rolling the soccer world by its performance on both off the field and on the field. Everyone knows that it has won its 20th English Premier League title with four matches in hand, and now it posts record revenue for the third quarter ending 31st march 2013. The balance sheet it much impressive than what it was during last quarter, coz there is a surge in every significant revenue head. Like, there is a total revenue total of £91.7m, including sponsorship revenue which has increased by more than 50% YoY. Similarly, earning before income tax and depreciation allowances, which is considered the real income for a period, has also increased by 22.5 percent. More significantly, United also managed to reduce their high rising debts in last nine months, perhaps now its third party debts stand at 367.6 million pounds – a well deserving drop of 16 percent. The major contribution to debt reduction was its public offering in the last August where it became a listed soccer club with its opening price of $14. After the news of its good profits, its stocks ended at $18.41 on Wednesday.
If we leave apart depreciation and tax elements, it was almost a triple jump in overall P&L statement for United, even after reserving for depreciation and taxes, its net profit has almost tripled than its YoY figures. Talking about the impressive results, executive vice chairman Ed Woodward said, “Each of our three primary sectors -commercial, broadcasting and match day – delivered strong top-line gains and helped us achieve a record third quarter for both revenue and adjusted EBITDA. In addition, we are delighted to be continuing and deepening our relationship with Aon, as our new Training Kit, Training Centre and Tour Partner, for an additional eight years.
“I wouldn’t expect there to be a need for a major retooling of the squad, we have fantastic depth. We are very comfortable with the makeup of the team and the squad. … We could put two first teams out with 11 internationals,” he added.
Manchester United is owned by rich American Glazer family, and their role in the club has ever been interactive that is why they could manage to improve club stand in both on the field and off the field. With a strong Balance Sheet, United can now spend on improving their training facilities, players’ deals, and all that. Woodward further said that “Our top priority is strengthening the squad to ensure we are best-positioned for successful runs in all the major competitions next season. I wouldn’t expect there to be a major retooling of the squad,” as “there is incredible depth. We could put two first teams out with 11 internationals in each.”