adminLONDON.
Manchester United were predicted yesterday to be-come the first English Premier League soccer club to smash the £100 million barrier for commercial revenue alone.
The most recent accounts from Old Trafford showed revenues rising to £24 million over the first quarter of the accounting year, and it is thought the second, up to December 31, will be just as strong.
United’s new aproach to commercial opportunities, agreed with owners the Glazer family and implemented by commercial director Richard Arnold, has allowed the club to rapidly expand that area of their revenue.
The last annual figures showed a 16 percent growth in commercial income to £81 million and last week global logistics giant DHL became the latest company to confirm an extended “partnership” with the Old Trafford outfit, their three-year deal allowing them to take charge of the distribution of United’s massive merchandising operation.
Even if United, chasing a 19th league title, do not get to the magic £100 million mark this year, it is only a matter of time before they make it.
And with revenue streams continuing to grow in other sectors, chief executive David Gill is confident that the spread across all three areas; media, matchday and commercial means United are insulated against future problems in other areas.
“One of the strengths of this club compared to others is that we get income from all revenue streams,” he said.
“Our match day revenue is around 40 percent of our overall turnover, we are part of a great competition in the Premier League that continues to grow and the commercial sector has gone up from 20 percent to 30 percent.
“That will stand us in very good stead. They are all high margins and will continue to give us the money Sir Alex Ferguson needs to keep the club at the top. There is a strong desire within our great supporter base for that to happen.”
To place United’s financial strength into context, rapidly rising neighbours Manchester City made 11th place in last year’s football “rich-list” and their overall turnover was only 125 million.
Speculation about a potential £1,6billion takeover bid from Qatar lingers, even though the club response remains the same.
“We have received no approach and no approach would be welcome,” said a United spokesman. “The club is not for sale.”
Meanwhile, Manchester United manager Sir Alex Ferguson insists he has substantial funds to spend on new players in the next transfer window.
While English Premier League soccer rivals Chelsea, Manchester City and Liverpool all spent vast sums to improve their squads during the January window, Ferguson’s only signing was a low-key swoop for Danish goalkeeper Anders Lindegaard.
Ferguson’s lack of spending brought renewed speculation that United’s owners — the Glazer family — are not willing to plow large amounts of cash into team rebuilding.
However, Ferguson is adamant the money is there if he wants it and he expects to go back into the market at the end of the season.
“Billionaire owners have introduced a new world that is turning football on its head,” Ferguson told United Review.
“For our part, we cannot afford to sit in an ivory tower. We have to face the challenge. It is a healthy competition and it goes without saying that we will not shirk it and I don’t think we are doing so.
“Although I let the transfer window shut without signing a new player, that is because we did our homework some time ago and didn’t have to rush into any emergency buying.
“We had an interest in one player, and I thought we had a chance of bringing him in, but the other parties involved weren’t ready and so we have put it away until the summer”. — AFP.
Online Reporter