Manchester United plc

Manchester United plc Annual Review - Investor Summary

Here's what you need to know about Manchester United's year, straight to the point:

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1. The Big Picture

Manchester United makes money from soccer games, sponsorships (like TeamViewer on their jerseys), merch sales, and player trades. This year, they expanded sponsorships aggressively, signing deals in 15+ industries (tires, snacks, tech) and targeting the U.S. and Asia. On the field: 3rd in the Premier League (up from 6th), stadium upgrades, but still no trophies.

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2. Financial Snapshot

• Revenue: £648 million (up 11% from last year).
• Profit: £28 million loss (down from a £6 million profit last year).
• Why the loss? Higher player wages and one-time costs.
• Bright spots: Sponsorships hit a 5-year high (excluding Adidas), merch sales up.

Takeaway: Making more money, but spending even more to compete.

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3. Wins vs. Struggles

✅ Wins:

• New £60M/year shirt deal (Qualcomm) + 20+ new sponsors (Betfred, Cadbury, Apollo Tyres).
• Women’s team broke attendance records.
• Sold out nearly every home game.

❌ Struggles:

• Early Champions League exit = lost $$$.
• Star players injured = fewer wins.
• Fan protests over ticket prices and £650M debt.

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4. Debt & Financial Health

• Debt: Still £650M (same as last year).
• Cash: £80M in the bank (enough for short-term needs).
• Red flag: Player wages eat up 65% of revenue (experts recommend 50%).

TL;DR: Not in crisis, but debt and payroll are risky.

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5. Risks to Watch

• Losing seasons = sponsors/fans leave.
• Rising interest rates = costlier debt.
• Overpaying for aging stars.
• Fan protests scaring investors.

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6. How They Compare

• Revenue: Behind Real Madrid/Barcelona, ahead of Liverpool/Arsenal.
• Social media: 200M+ followers (#1 globally).
• Sponsorships: More diverse than rivals (tires, snacks, betting).
• On-field: Not as strong as Manchester City or Bayern Munich.

Takeaway: A global brand, but not the best team.

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7. Leadership & Strategy

• New CEO: Ex-Juventus exec focusing on finances and youth talent.
• New sponsorships: Targeting "exclusive" deals (e.g., one tire sponsor worldwide).
• Owners: Glazer family remains (unpopular, but not selling).

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8. What’s Next?

• Summer 2024: U.S. preseason tour ($$$ from merch + tickets).
• Player sales: Likely selling stars to fund new signings.
• Champions League qualification = critical for 2024 revenue.

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9. Market Trends Impacting Them

• Streaming: TV money at risk if cable declines.
• Inflation: Rising costs for stadium operations.
• Regulations: New spending rules could limit big signings.

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Should You Invest?

Key Takeaways:

1. Strengths: Sponsorship machine (5 straight years of growth), global fanbase, improving on-field performance.
2. Risks: High debt, wage bill, trophy drought, fan unrest.
3. Opportunity: If they win trophies + control costs, the stock could rebound.

Final Call:

• Optimists: Bet on the brand’s legacy and sponsorship growth.
• Skeptics: Wait for proof they can win titles and reduce debt.

Manchester United is a high-risk, high-reward play. If you believe in comebacks, watch closely. If not? Stick to safer bets.

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Prepared for everyday investors – no jargon, just the facts you need.