Man Utd reports record revenues as TV cash soars

Manchester United has reported record revenues of £581m for the 2017 financial year, as TV cash soared.

In a year when it won the Europa League and EFL Cup, the club also signed 12 sponsorship deals, and saw commercial and matchday revenues increase.

The club benefitted from a huge rise in domestic TV revenues during 2016-17, the first season in the current three-year UK broadcasting deal.

The Old Trafford club is currently second in the Premier League.

It has the same number of points and goal record as leaders Manchester City.

In the year to 30 June, broadcast income jumped to £194.1m from £140.4m the year before, a rise of 38%.

This season the club is back in the Champions League thanks to its Europa League final victory over Ajax in Stockholm in May. The journey to that final also helped to boost TV revenues during the season.

It is the second successive year they have accrued revenues of more than £500m, recording a figure of £515.3m last year.

It comes after the club returned to the top of the Deloitte money list in January.

Higher wages

"We concluded a successful 2016-17 season with a total of three trophies and a return to Champions League football," said executive vice-chairman Ed Woodward, referring to them also winning the Community Shield during the season.

"We are pleased with the investment in our squad and look forward to an exciting season."

Employee wages - including those of players - increased by 13%, "primarily due to an increase in first team salaries".

Operating expenses for the year were £511.3m, an increase of £74.7m, or 17.1%, on the previous year.

However, net debt fell by £47.8m to £213.1m.

The club is competing again in the Champions League this season

The club also posted record operating profits of £80.8m, up from £68.9m the previous year.

Commercial revenue rose 2.7% to £275.5m. Money from sponsorship, retail, and licensing was up, but the club said it lost 15% over the year on its digital output.

Match-day revenue climbed 4.7% to £111.6m, but the club said this was "primarily due to playing two more home games in the year".

Meanwhile, German player Bastian Schweinsteiger's return to Jose Mourinho's first-team squad during the year saw him reinstated as an "exceptional credit" item on the annual balance sheet, at a value of £4.8m.

In its results statement the club also said: "Tax expense for the year was £17.3m, compared to £12.5m in the prior year, primarily due to the increase in profit before tax and a reduction in foreign exchange gains on US dollar-denominated deferred tax assets."