Premier League club Manchester United has today (Thursday) announced record second-quarter revenues, but has also revealed the shocking financial impact of José Mourinho’s dismissal.
In the second quarter ending December 31, 2018, the club generated a total revenue of £208.6m (€236.3m/$266.6m), up 17.6 per cent on the same period last year.
But the club also revealed that is spent £19.6m on so-called “exceptional item[s]”, including compensation money paid to Mourinho and other coaching staff who were sacked in December, after the club suffered its worst start to a Premier League season in 28 years.
Elsewhere in the quarter, United signed an agreement with Chinese property developer Harves to open three entertainment and experience centres in China, and also inked a new multi-year global partnership with US personal care brand Remington.
Commercial revenue for the quarter was £65.9m, an year-on-year increase of 0.9 per cent. Sponsorship revenue for the quarter was £40.3m, an increase of 2.5 per cent, while retail, merchandising, apparel and product licensing revenue fell by 1.5 per cent to £25.6m.
Broadcasting revenue for the quarter was £103.7m, an increase of £28.5m or 37.9 per cent primarily due to the new Uefa Champions League broadcasting rights agreement and playing one additional Champions League game. Matchday revenue for the quarter was £39m, an increase of 5.7 per cent, as United played one additional Champions League home game at Old Trafford.
United also set a record second-quarter adjusted EBITDA of £104.3m, a rise of 28.4 per cent, while operating profit rose 4.3 per cent to £44m. Total operating expenses for the quarter were £160.3m, an increase of £24.1m, or 17.7 per cent over the previous year.
United reported that its net debt as of December 31 stood at £317.7m, a reduction of £10.9m over the year.
For the 2019 financial year, the club said it continues to expect revenue of between £615m and £630m, with projected adjusted EBITDA of £175m to £190m.