Manchester United and Bayern Munich reported this week incredible financial figures. The Red Devils reported a double digit gains at merchandise business while the Bavarian club has set record revenue figures for last year’s football season.
Manchester United PLC reported that its retail, merchandising apparel and product licensing revenue, which is managed by Nike, increased 13.8 percent to £10.7 million in the second fiscal quarter ended Sept. 30 compared with the prior year quarter.
The increase was attributed primarily to additional profits earned under an merchandising and licensing agreement with Nike agreement, which expires at the end of the current season.
That contract requires Nike to pay a minimum of £303 million over 13 years, plus half of annual profits from the club’s merchandising and licensing operations. Nike also provides the team’s football kits and licensed merchandise in stores worldwide [Source: Sports One Source]
In the fiscal year ended March 31, 2013, Nike paid Manchester United the minimum fee of £25.3 million, plus £12.8 million in profits, up from £8.4 million in profits in the 2011/12 season. British media have speculated the value of the contract could triple.
With more than 650 million fans worldwide, Manchester United claims to be one of the most valuable professional sports team in the world.
During the 2012/13 season, more than 5 million Manchester United-branded items, including over 2 million of the team’s soccer jerseys, were sold. The products, which are made under 200 licenses, are sold at 10,000 retail doors in over 130 countries.
As for the German Bundesliga champion, Bayern Munich has set record revenue figures for last year’s football season, which also saw UEFA Champions League and the DFB-Pokal domestic cup wins.
At the club’s annual general meeting yesterday, turnover was announced at €432.8 million for the 2012/13 financial year, compared to €373.4 million in the previous year.
This figure was taken from the accounts of FC Bayern München AG, the joint stock company responsible for the club’s professional football operations, and its Allianz Arena München Stadion operation. The former accounted for €393.9 million of the total, up from €332 million in 2011/12.Sponsorship and marketing revenues topped €102 million, up from €82 million the previous season.
Merchandising revenue increased to €82.8 million from €57.4 million. Profit after tax also rose to €14 million, an increase of some 30 per cent on 2011/12. Bayern has posted a profit for each of the past 21 years.
Bayern finance director Jan-Christian Dreesen said: “We have solid financial foundations. Revenues from footballing operations, our sponsorship and merchandising divisions make an important and not inconsiderable contribution to our great commercial success.“Thanks to the operating principles sustained over the course of decades, FC Bayern has established an outstanding financial base, allowing us to look to the future with confidence.” [Source: Sport Business]