English football club Manchester United is predicting record revenues of up to £570 million this year, its quarterly results showed on Tuesday.
The club is currently sixth in the Premier League and will contest the Europa League final against Ajax on Wednesday for a place in the lucrative Champions' League.
During the fiscal third quarter ending March 31st this year, it announced five sponsorship deals with EA Sports, Tag Heuer, Apollo, Virgin Money and Hong Kong Jockey Club.
As well as that, the club signed “four leading players” in Eric Bailly, Zlatan Ibrahimovic, Henrikh Mkhitaryan and Paul Pogba.
It emerged last week that a Fifa inquiry is under way following multimillion pound payments involved in Paul Pogba’s world record €100 million transfer from Juventus to Manchester United last summer.
Pogba's agent, the Monaco-based Mino Raiola, is reported to have been paid €49 million from the deal.
Controversy
However, the club has shrugged off the controversy and raised its full-year revenue and profit forecast for the year ending June 30th, 2017.
The projected revenue of £570 million is up £30 million from predictions in the second quarter.
The club generated a record profit of £191.9 million last year and remains on course for earnings before interest, tax, depreciation and amortisation of between £185 million and £195 million.
Total revenue for the third quarter was £127.2 million and broadcasting revenues of £31.4 million were up 12.9 per cent.
Match day revenue for the period was £16.8 million, a decrease of £8 million, or 32.3 per cent over the three months. The club said this was “primarily due to playing three fewer home games across all competitions”.
Staff costs rose 18.3 per cent on the previous year quarter and net debt is £366.63 million.
Trophies
Manchester United executive vice-chairman Ed Woodward said the club was determined to challenge for trophies going forward.
“While our financial results for this quarter reflect the impact of our non-participation in the Uefa Champions League, we are pleased that we remain on track to deliver record revenues for the coming year,” he said.
“During the quarter, we added a number of top quality players to our squad, which once again demonstrates our determination to challenge for trophies.”
In a note on commercial revenue, the club said “management do not expect two consecutive seasons of non-participation in the Champions League”.
Separately, under the terms of certain contracts with other football clubs in respect of player transfers, additional amounts of up to £41.4 million would be owed by the club if certain specific performance conditions are met.
In the same context, the club could receive up to £1.9 million from other clubs in player-related bonuses.
