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Manchester United's Profits Surge: Devoted Fans and Stadium Capacity Boost Earnings

Manchester United, the world's most valuable football club, reports a 42% increase in profits driven by loyal fans and expanded stadium capacity. With soaring revenues and doubled pre-tax profits, the club is reclaiming its position at the top. Explore how gate receipts, sponsorships, and successful seasons contribute to the financial success of the iconic club. Learn about accounting principles, financial statements, and funds flow to understand the club's economic landscape and achievements.

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Manchester United's Profits Surge: Devoted Fans and Stadium Capacity Boost Earnings

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  1. Devoted fans: capacity gates boosted earnings

  2. Manchester United's profits soar • The world's most valuable football club, Manchester United, has restaked its claim to top position in the sport's wealth league by reporting profits up 42%. • The club, which claims 50 million fans worldwide and is on the verge of its third successive English Premier League title, has reported record pre-tax profits of Ł17.3m for the first six months of the season. • The profits surge, which sent Manchester United shares up almost 10%, was largely the result of gate receipts up almost one third to Ł28.4m. BBC: Monday, 2 April, 2001

  3. Manchester United profit doubles(Jan 11, 08) • LONDON (Reuters) - Manchester United said its annual pre-tax profit doubled on increased sponsorship and after it expanded its stadium and won the League title. • Pre-tax profit in the 12 months to June 30 rose to 59.6 million pounds from 30.8 million pounds in the year-earlier period, the club said on Friday. • The 2006-2007 Premiership winning club, owned by U.S. billionaire Malcolm Glazer, said annual revenue surged 27 percent to 210 million pounds from 165 million pounds. • "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.

  4. Manchester United profit doubles (Cont)(Jan 11, 08) • More seats at Manchester United's Old Trafford stadium helped the club lift its match dayrevenue by 30 percent to 92.6 million pounds, 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 61.5 million pounds, the club said. • Replica shirts, shirt sponsorship by American International Group (NYSE: AIG - news) and other commercial revenues rose 15 percent to 56 million pounds. The club said it has about 333 million followers around the world.

  5. keep record calculate prepare record fill out income and expenses transactions tax returns financial records costs and expenses financial statements How do they know?

  6. ACCOUNTING + FINANCING

  7. 1 – B 2 – C 3 – D 4 – G 5 – A 6 – E 7 – F 1 shareholders/stockholders 2 earnings/income 3 liabilities 4 turnover 5 assets 6 depreciation/amortisation 7 debtors/acc. receivable 8 creditors/acc payable 9 stock/inventory 10 overheads/fixed costs MK U 13 – 1a, 2a

  8. Accounting & Financial Statements, p.81 1 assets, 2 stock/inventory, 3 depreciation, 4 share/stockholders, 5 earnings/income, 6 turnover, 7 overhead(s), 8 liabilities, 9 debtors/acc. receivable, 10 creditors/acc. payable

  9. Accounting and Financial Statements MK p 81 • operating, financing and investment activities • source of funds: • flow of cash in and out of the business • application of funds: • trading profits b) purchase of assets • sales of assets d) borrowing • issuing of shares f) payment of dividends g) trading losses

  10. Accounting and Financial Statements MK p 81 FUNDS FLOW STATEMENT • operating, financing and investment activities • source of funds: a, c, d, e • flow of cash in and out of the business • application of funds: b, f, g, h • trading profits b) purchase of assets • sales of assets d) borrowing • issuing of shares f) payment of dividends g) trading losses h) repayment of loans

  11. profit: - tax • dividends • retained / net profit • costs • expenses • total sales or turnover • overheads List them in the usual order:

  12. PROFIT AND LOSS ACCOUNT • profit: - tax • dividends • retained / net profit • costs • expenses • total sales or turnover • overheads List them in the usual order: turnover, costs, expenses, overheads profit

  13. the last day of the financial year • company’s assets • liabilities • stockholders’ funds Classify as assets or liabilities: debtors creditors goodwill patentsaccounts receivable loans and bondstrade marks accrued expenses taxes interest accounts payable

  14. BALANCE SHEET • the last day of the financial year • company’s assets • liabilities • stockholders’ funds Classify as assets or liabilities: debtorscreditorsgoodwillpatentsaccounts receivableloans and bondstrade marksaccrued expensestaxes interestaccounts payable

  15. Homework: FIND OUT ABOUT: (p 81) • share capital, • market capitalisation, • net book value, • current/replacement cost, • accrued expenses, • share capital • share premium • paid-in-surplus COMPLETE THE SENTENCES IN 2c... p 82

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