Man United Revenue Declines 10% as Sale Process Continues

Manchester United reported revenue of £167 million—$206 million based on current exchange rates—for its second quarter, representing the three months ending Dec. 31, 2022. It was a drop of 10% from the prior year, largely driven by the club’s absence from Champions League and its lucrative payouts. Instead, United participated in the UEFA Europa League, resulting in a 32% decline in broadcast payments for three months. Net profit for the quarter was $7.7 million (£6.3 million).

Once again, United did not pay any dividends to the Glazer family, which has been a point of contention for United fans. From late 2003, when the family began buying shares, through fiscal 2021, when the club suspended dividend payments, the Glazers collected $573 million.

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The financial report comes as the team moves into month five of its sale process after it hired Raine Group in November to explore “strategic alternatives.”  INEOS founder Jim Ratcliffe and Qatar’s Sheikh Jassim bin Hamad Al Thani have emerged as the leading bidders with both making offers greater than $6 billion.

The publicly traded stock had doubled at one point but currently sits at $22.40, 17% below its high, as investors fret that the Glazers will ultimately retain control of the team and sell a minority stake to a U.S. hedge fund. Elliott Investment Management, Ares Management and Sixth Street have all offered financing to the family. The current enterprise value of the company is $4.5 billion, including debt.

Man United said it continues to see record-breaking attendance and matchday hospitality revenue. Ticket sales reached 2.3 million, surpassing the record set during the 2016-17 season, and there are 145,000 fans on the season ticket waiting list. In February, the company announced a 5% bump to season ticket prices after 11 years of no increases.

Broadcast revenue for the quarter fell to $72 million without a Champions League payment, while matchday revenue fell 14% to $37 million, due to two fewer home games at Old Trafford. Sponsorship revenue jumped 43% to $62 million, thanks to its training kit agreement with Tezos signed in February 2022, as well as a “one-off sponsorship credit.” Retail revenue dipped by 3% to $35 million.

For fiscal 2023, the company reiterated its previous revenue guidance of £590 million to £610 million ($726 million to $750 million) and its previous adjusted EBITDA guidance of £125 million to £140 million ($154 million to $172 million).

In January, Manchester United was valued at $5.95 billion in Sportico’s Premier League valuations. The club currently sits in third place in the EPL standings, 19 points behind league-leading Arsenal.

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