Manchester United report record profits as economists predict big losses for City
Manchester United FC have reported record first-quarter profits, for the three months ending September 30. Having continued their run of managing to allure a large number of supporters to every game held at old Trafford, and selling club merchandise all
over the globe, United reported a 16.5% increase in revenues, which is around £73.8 million.
The Red Devils are the world’s most valuable team, valued at around $1.9 Billion, and the second most valuable team brand, valued at $269 Million. The club also recently reported, in a published booklet, that they had made $30 Million in operating income
- a 30% increase over last year's figure from the same time.
Commercial revenues at the club have increased too with multiple new sponsorship deals being finalized; the most valuable of these was a training ki deal with the transport giant DHL. The deal was worth around £40 million, and provided a large chunk of the
increased commercial profit that was raked in by the club during the first quarter of the current fiscal year.
Other marketing strategies, especially in Asia, have worked wonders for the English champions, with companies like the Malaysian Mamee-Double Decker’s Mister Potato and Vietnamese telecommunications company Beeline quickly signing licensing deals with the
Red Devils this year.
Even after this excellent surge in profits, the club is under what is now a slightly alleviated number, bordering around the £330 million mark.
If Manchester United can continue working the way they are, and continue attracting juicy sponsorship deals, then maybe in time, the club will be able to merge out of the economic recession unharmed.
In the past, it has been suggested that United might have to sell some of their spectacular super-star players, in order to regain financial stability, even though officials have denied this claim, United do seem to be looking to let go off their record
signing, http://www.senore.com/Football-soccer/Dimitar-Berbatov-c11254, if a good enough offer is made by interested clubs.
On the other side of Manchester, economists are saying that Manchester City will be reporting huge losses once they come up with their public financial booklet in two weeks time. Losses upwards of £150 million are expected, with some economists going as
far as to say that the losses along the lines of £175 million would not be surprising.
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