Thursday 14 December 2017

Huge Adidas deal helps United profits surge to £141m

Also filed with Companies House were the accounts of Red Football Limited, Manchester United Ltd's immediate parent, which covers its ancillary businesses.
Also filed with Companies House were the accounts of Red Football Limited, Manchester United Ltd's immediate parent, which covers its ancillary businesses.

Alan Tovey

Manchester United have enjoyed greater success with their finances than they have on the pitch recently, with the club's annual accounts revealing rising revenues and surging profits.

Documents lodged with Companies House show Manchester United Ltd made revenues of £254m in the year to the end of June 2016 - some 25pc higher than during the previous year.

Pre-tax profits were even more impressive, surging 73pc to £141m thanks to a mammoth sponsorship deal with Adidas.

Analysis of the accounts show Manchester United received £72.7m from the German sportswear giant during the financial year after signing a 10-year deal worth £750m.

The agreement - described as "a global technical sponsorship and dual-branded licensing deal" - started in the 2015-16 season, and is believed to be the biggest kit deal in sport.

Adidas replaced Nike, who pulled out of talks about continuing their relationship which had stretched back to 2002, because they thought United were demanding too much money.

A deal with General Motors, which paid £52.2m over the year to have its Chevrolet brand on players' shirts, also bolstered the coffers.

The deal shows the global attraction of Manchester United: Chevrolet ceased to exist as a retail brand in the UK in 2015 because of a "challenging business model" but lives on in other parts of the world.

Also filed with Companies House were the accounts of Red Football Limited, Manchester United Ltd's immediate parent, which covers its ancillary businesses.

Their finances were similarly impressive - again boosted by sponsorship deals - with revenue rising from £395m to £515m and a profit of £49m, reversing a £2.3m loss the year before.

The parent group paid a £20m dividend during the year, compared to no payout last time around. (© Daily Telegraph, London)

Irish Independent Sport Star Awards

Pick our magic sports moment of the year and win a trip for two to London. To view the shortlist and cast your vote click here.

Telegraph.co.uk

Promoted Links

Sport Newsletter

The best sport action straight to your inbox every morning.

Promoted Links

Editor's Choice

Also in Sport