Manchester United Revenues Drop due to no Champions League Participation

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Manchester United reported that revenue from its Nike managed merchandising business, which Adidas will take over next season, continued to decline in the fiscal second quarter.

According to Sports One Source, Man United reported Retail, Merchandising, Apparel & Product Licensing revenue for the second quarter was £7.9 million, a decrease of £1.2 million, or 13.2 percent over the prior year quarter, primarily due to reduced Nike guaranteed revenue due to non-participation in the UEFA Champions League in the current season.

The decline was dwarfed, however, by a £6.8 million, or 23.4 percent increased in sponsorship revenue, which reached £35.8 million during the quarter.

Under Man Utd’s record deal with adidas, which was signed last summer,  the club is guaranteed a minimum  £750 million ($1.3 bn) in payments over ten years beginning with the 2015/2016 season.

Manchester United remains a strong commercial machine with £433.2 million in revenue according to Deloitte Football Money League 2014.

Also, United’s commercial policy of adding multiple regional partners to their already impressive global partner portfolio continues, with new deals struck in developing markets such as China, South Korea and Nigeria.

This success looks set to continue with multiple new deals announced since the opening weekend of the 2014/15 season.

Karl Lusbec