Manchester United profit doubles on bigger stadium

Manchester United Plc said its annual pre-tax profit doubled on increased sponsorship and after it expanded its stadium and won the League title, Reuters reported Friday.

Pre-tax profit in the 12 months to June 30 rose to GBP 59.6 mln ($116.6 mln) from GBP 30.8 mln in the year-earlier period.

The 2006-2007 Premiership winning club, owned by U.S. billionaire Malcolm Glazer, said annual revenue surged 27% to GBP 210 mln from 165 mln.

Interest in the world’s richest soccer League and new sponsorship will keep pushing income higher, Chief Executive David Gill said.

“I am confident that the uplift in the Premier League television deal, together with our new sponsorship sales structure will enable the club to continue to increase its revenues and profitability,” Gill said in a statement.

Britain‘s Barclays Premier League is followed in more than 200 countries as fans in Africa or Asia want to see stars such as Wayne Rooney or Christiano Ronaldo, both at United.

More seats at Manchester United’s Old Trafford stadium helped the club lift its match day revenue by 30% to GBP 92.6 mln, the club said.

Reaching the semi-finals of the lucrative UEFA Champions League competition and the final of the domestic FA Cup helped the Reds increase their media revenues by more than a third to GBP 61.5 mln, the club said.

Replica shirts, shirt sponsorship by American International Group and other commercial revenues rose 15% to GBP 56 mln. The club said it has about 333 mln followers around the world, including a big following in Cyprus with an official local fan club.

At a time of soaring players’ salaries, the club managed to cut its wages-to-turnover ratio to 43.6% from 51.6%.

By contrast, players’ agents were paid more: GBP 2.1 mln last season from GBP 1.8 mln during the previous one, Manchester United said.