The Red Devils are reporting strong financial results for the past year, as well as a reduction in net debt, and are now seeking on-field success
Manchester United have announced record revenues of £627.1 million ($782m) and an operating profit of £50m ($62m) for 2019, with the club “committed to winning trophies”.
A run to the Champions League quarter-finals and an increase in broadcasting revenue helped the Red Devils achieve record figures for the fiscal year.
Revenues were within the estimated range of £615m ($767m) to £630m ($786m), as noted in their Q3 results, but are expected to fall to £580m ($724m) or below in 2020 due to a lack of Champions League football.
United are second only to Real Madrid in terms of global revenue in football, the La Liga giants having generated £662.5m ($826m) in 2018, according to this year’s Deloitte Football Money League.
The positive financial figures come despite a difficult run of results for Ole Gunnar Solskjaer’s side since March, the Red Devils winning just five of their past 19 matches in all competitions.
Executive vice-chairman Ed Woodward said in a statement: “We remain focused on our plan of rebuilding the team and continuing to strengthen our youth system, in line with the philosophy of the club and the manager.
“This has been reflected in the recent addition of three exciting first-team players, key soccer professional contract extensions and the talent we have coming through our Academy. Everyone at Manchester United has been committed to delivering on our primary objective of winning trophies.”
Woodward went on to say: “We and our growing global fanbase demand success. Success means winning trophies. That target and that standard has never changed for Manchester United. The progress we made on the business side underpins the continued investment in the football side.
“Much of the progress made around that investment – the academy, the recruitment department and the training ground facilities – has been behind the scenes and therefore isn’t immediately apparent to those on the outside looking in.
“For example we’ve materially expanded our recruitment department in recent years to increase its efficiency and productivity. Some of the senior staff in these roles have been at the club for over 10 years. Recruitment recommendations and decisions are worked on, on a day-to-day basis by this department and the manager and his team.
“These investments together with the commitment we made to Ole and his coaching staff in March have given us the building blocks for success.
“Whilst we’re confident this investment will deliver results, it’s important that we’re patient, while Ole and his team build for the future. We will continue to focus on the long-term strategy and wont be influenced by short-term distractions.”
United signed Daniel James, Aaron Wan-Bissaka and Harry Maguire in the most recent transfer window for a combined reported fee of close to £143m ($178m).
They sold Romelu Lukaku to Inter for approximately £74m ($92m) and also sent Alexis Sanchez on loan to San Siro, helping to reduce their costs.
New contracts for Phil Jones, Victor Lindelof, Scott McTominay, David de Gea, Marcus Rashford, Anthony Martial and Luke Shaw have also contributed to a £36.3m ($45m) increase in employee benefit expenses compared to last year.
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In February, the club announced that sacking Jose Mourinho led to an “exceptional” cost of £19.6m (£24m).
The club’s net debt has fallen by £50.1m ($62m) to £203.6m ($254m), primarily due to an increase in cash flow based partly on commercial contracts.
In 2019, United agreed either renewed or new terms on 10 global sponsorship deals and struck a partnership with Harves China, a real estate development firm, “to open multiple club ‘Experience Centres'”.