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Manchester United: Monetizing a successful football club

Published: April 2013 · Publisher: MarketLine
Manchester United is one of the world’s most renowned sports clubs. The team’s on-field success has helped the club build an estimated global fan base of 659 million and the club’s management has successfully translated this into ...
Report Type Case Studies
Language English
Format Electronic (PDF)
Pages22
Frequency Updated Annually
Availability Will be emailed within 1 business day
Reference No. 0109-6148
Price € 369,00
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Introduction

Manchester United is one of the world’s most renowned sports clubs. The team’s on-field success has helped the club build an estimated global fan base of 659 million and the club’s management has successfully translated this into exceptional financial performance. This case study analyzes how the club has grown revenues and profits, as well as the threats and opportunities it faces.

Features and benefits

* The publisher's Case Studies describe topics such as innovative products, business models, and significant company acquisitions
* Fact-based and presented in an accessible style, they explain the rationale of commercial decisions and illustrate wider market and economic trends

Highlights

Manchester United PLC operates as a single reporting segment; the operation of a professional sports team. Since 2010, it has grown revenues from £286.4m ($453.8m) to £320.3m ($507.5m) for the financial year ended June 2012, and has turned a 2010 net loss of £47.5m ($75.3m) into net income of £24.7m ($39.1m).
For the financial year ended June 2012, the sponsorship sub-segment brought in revenues totaling £63.1m ($100m). This represented an 8.2% increase on the previous year, making it the club’s fastest-growing source of revenue.
For FY2012, the Broadcasting sector was the club’s second largest source of revenue, generating £104m ($164.8m). This demonstrates its importance to Manchester United as a going concern, although to a large extent, the club does not control how much revenue it makes from the broadcasting of its games.

Your key questions answered

* How has Manchester United monetized its on-field success?
* What are Manchester United's revenue streams?
* What are the biggest threats to Manchester United's business model?
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O VERVIEW
Catalyst
Summary
MANCHESTER UNITED: COMMERCIAL REVENUE
The commercial sector is now Manchester United’s most significant revenue stream
Manchester United: Sponsorship
Manchester United: Retail, merchandise, apparel and product licensing
Manchester United: New media and mobile
MANCHESTER UNITED: BROADCASTING & MATCHDAY REVENUE
Television broadcast income is negotiated by central bodies on the club’s behalf
Premier League broadcast revenue
UEFA Champions League broadcast revenue
MUTV
The club has adopted a premium seating strategy in a bid to grow Matchday revenue
Manchester United has also increased ticket prices in recent years
Other Matchday revenue
MANCHESTER UNITED: OPPORTUNITIES & THREATS
Manchester United SWOT analysis
Deterioration in on-field performance represents the greatest threat to the club
Sponsors reducing ad spend is a threat to Commercial revenues
The club is targeting under-developed markets for growth
CONCLUSIONS
Manchester United has successfully monetized its on-field success
APPENDIX
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Disclaimer
Copyright © FriedlNet. You may share using our tools Please don't cut content from FriedlNet and redistribute by email or post to the web.