Have you ever wondered how the Manchester United Makes Money? In this post we will discuss the Revenue Model of Manchester United.
Manchester United is one of the most popular football clubs in the world with millions of fans across the globe. The Manchester United Football Club was formed in the year 1878 under the name of Newton Heath LYR (Lancashire and Yorkshire Railway). The club was rechristened to Manchester United in the year 1902. The club’s iconic home ground, the ‘Old Trafford’ Stadium is the largest in the United Kingdom and has been the club’s ‘home’ for over a century now.
The Revenue Model of Manchester United
The following are the different sources of revenue for Manchester United.
Broadcasting revenue is the revenue derived by the club from the sale of global broadcasting rights to the various football leagues like the English Premier League, Champions League and other championships – that the club participates in.
The broadcasting rights (television & internet) to football events like the Premier League and the Champions League are sold to Media Companies across the globe by the league organizers. This revenue is then shared with the participating teams which forms a major source of revenue for such teams.
MUTV: Manchester United also owns a global television channel – MUTV which delivers Manchester United content to different countries around the world. The channel earns its revenue through content syndication and advertising.
2. Sponsorship Revenue.
Given the club’s standing and its popularity among the fans (read Brand Value), global and regional brands find it alluring to associate themselves with Brand ‘Manchester United’ as sponsors. Sponsorship fees from forms a significant source of revenue for Manchester United.
The Club’s current shirt Sponsor is General Motors (Chevrolet). The deal being worth approximately 559 Million US Dollars over a seven year period. Their current training facilities and training kit partner is Aon.
The club’s revenue from sponsorship fees stood approximately at 162 Million Euros for the year ended 30th June 2017.
3. Merchandising Revenue.
Merchandising Revenue is derived from the sale of sports apparel, training and leisure wear and other clothing featuring the Manchester United brand as well as other licensed products from coffee mugs to car accessories. These products are distributed on a global basis through Manchester United branded retail stores and e-commerce platform, as well as through partners’ distribution channels.
4. Match Day Revenue
Match Day Revenue is derived form the sale of tickets to the matches played by the Manchester United Club at their home ground – The Old Trafford Stadium. Revenue is also generated from licensing the sale of food & beverages and other ‘hospitality’ sales relating to the ‘home’ matches played by the club at the Old Trafford.
5. Prize Money
Prize Money is the revenue generated from participating in various football leagues and the revenues earned, depend upon the amount of prize money available in respect of a competition and the performance of the Manchester United team in such competitions.
6. Other Revenue Sources
Additional revenue is generated through the syndication of Manchester United related content (news, videos, galleries etc) to various media partners as well as advertising revenue generated from the Manchester United Website and related mobile properties.
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