Manchester United forecasts record profit next year

Manchester United forecasts record profit next year

By Neil Maidment

LONDON (Reuters) – English soccer club Manchester United expects profit to jump by as much as 46 percent next year thanks to a return to Champions League soccer & a record kit deal & will start paying regular dividends.

The 20-times English champions, who have struggled for form since manager Alex Ferguson retired in 2013, said on Thursday it expected adjusted core earnings to be a record 165 million to 175 million pounds ($256 million-$272 million) in 2015-16, above the previous best of 130 million set in 2013-14.

p> The English Premier League club moreover forecast revenue of 500-510 million pounds which would bring it close to the world record for revenue of approximately 514 million pounds set by Spain's Real Madrid in 2013-14.

"Our record revenue & EBITDA (core earnings) guidance for 2016 reflects the underlying strength of our business & our confidence in its continued growth," United Executive

Vice-Chairman Ed Woodward said in a statement.

In light of the club's prospects, the board approved a regular quarterly cash dividend, its first since United floated on the New York Stock Exchange in 2012.

The club, which is majority owned by the American Glazer family, said shareholders would receive $0.045 per share in the first quarter of 2016 & that figure would be maintained.

The club's finances will be boosted this season by a return to Champions League soccer, Europe's top club competition. United failed to qualify for last season's campaign after finishing seventh in the Premier League in 2013-14, the club's worst performance since 1989-90.


A raft of global & regional sponsorship, including a shirt deal with General Motors & a world record 10-year 750 million pound kit deal with Adidas, are moreover major additions, while increased Premier League TV money will add to future revenue.

Despite the commercial success driven by United's global appeal, the club only finished fourth last season under new Dutch coach Louis van Gaal, still short of the success laden years under Ferguson.

To compete better, United spent more than 100 million pounds on new players in the summer, including French striker Anthony Martial, & sit third after five games in the league.

United said core earnings for the year to June 30 fell 7.8 percent to 119.9 million pounds, as expected, due to the absence of Champions League soccer last season.

Lower match day & broadcast sales pushed revenue down 8.8 percent, though the club's corporate appeal continued to increase, with commercial income up 4 percent in the year.

Gross debt rose 20.2 percent to 411 million pounds, the club said, adding that a stronger U.S. dollar was a key contributor.

In a separate filing, United renewed an option to raise up to $400 million through a share sale if it so wished.

Shares in United were little changed in early trade at $18.34 on Thursday, valuing the business at approximately $3 billion.

($1 = 0.6445 pounds)

SoccerSports & RecreationManchester UnitedEnglish Premier League

Source: “Reuters”

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