30 March 2023 , 11:18
531
0
Manchester United have published their most recent financial results as talks continue over the sale of the Premier League giants.
The biggest takeaway is that the club's debt is up to £535.7 million from £477.1 million - on account of the dollar's current strength against the pound.
United say that total revenue is down 10% year-on-year despite the figures showing that commercial revenue has increased by 22.2% to £78.7 million, with the club's matchday revenues down despite record sales of tickets, hospitality and memberships and broadcasting income taking a hit.
Despite that the club said that it made a net profit of £6.3 million for the quarter, which included a five-week break from first-team action because of the World Cup, and for the fiscal year it expects total revenue to be between £590 million and £610 million, with "its adjusted EBITDA guidance of £125 million to £140 million."
"Commercial revenue for the quarter was £78.7 million, an increase of £14.3 million, or 22.2%, over the prior year quarter," the club said. "Sponsorship revenue was £50.4 million, an increase of £15.2 million, or 43.2%, over the prior year quarter due to the impact of our training kit agreement with Tezos, together with a one-off sponsorship credit.
Marcel Sabitzer completes Man Utd transfer after last-minute deadline day dash
"Retail, Merchandising, Apparel & Product Licensing revenue was £28.3 million, a decrease of £0.9 million, or 3.1%, over the prior year quarter.
"Broadcasting revenue for the quarter was £58.7 million, a decrease of £27.7 million, or 32.1%, over the prior year quarter, primarily due to the men’s first team participating in the UEFA Europa League compared to the UEFA Champions League in the prior year.
The Glazers announced their intentions to sell in November (Getty Images)"Matchday revenue for the quarter was £29.9 million, a decrease of £4.7 million, or 13.6%, over the prior year quarter, due to playing two less home games in the current year quarter compared to the prior year quarter."
United, who claim that there is a season ticket waiting list of 145,000, added: "Total operating expenses for the quarter were £167.6 million, a decrease of £12.1 million, or 6.7%, over the prior year quarter."
The announcement comes at a time when US merchant bank Raine Group are evaluating a number of takeover offers for the club. Bids fronted by INEOS founder Sir Jim Ratcliffe and Qatari banker Sheikh Jassim are the frontrunners, though US hedge fund Elliott are among those to have lodged an interest in taking a minority stake that would see the Glazers remain in charge.
It is unclear when a preferred bidder will be put forward by Raine, a move that would see one party afforded a period of exclusivity that would see access to sensitive financial documentation for due diligence purposes.