#MUFC profit before tax down from £57m to £26m, mainly due to higher player costs, as wage bill shot up £32m and player amortisation rose £14m, while revenue only up £9m. Tax bill increased from £17m to £63m as a change in US corporate tax rate led to a £49m non-cash write-off. 
#MUFC revenue only grew £9m (2%). Only meaningful increase was broadcasting, up £10m (5%) to £204m. Commercial income was basically flat at £276m, while match day dropped £2m (2%) to £110m. Profit on player sales rose £7m to £18m.
#MUFC wage bill climbed £32m (12%) to a Premier League high of £296m, while player amortisation increased £14m (11%) to £138m. Other expenses were slightly down at £117m, but net finance costs were £6m (26%) lower at £18m (due to unrealised foreign exchange gains).
The #MUFC strategy has not been overly reliant on player sales and 2017/18 was no exception with only £18m earned from this activity, mainly Januzaj to Real Sociedad and sell-on fees. For perspective, this would have been one of the lowest in the 2016/17 Premier League.
#MUFC have reported profits for three years in a row, averaging £44m in that period. In fact, £57m in 2017 and £49m in 2016 are among the highest profits in the entire history of the Premier League (5th and 7th respectively). Loss in 2015 was due to lack of European football.
#MUFC results have hardly ever been boosted by player sales with 2009 being the last year where this made a meaningful contribution (Ronaldo’s £80m sale to Real Madrid). Since then, only one year has been above £20m, namely 2015, and that was just £24m.
Of course, #MUFC profits would have been substantially higher if they did not have to bear the cost of the Glazers’ leveraged buy-out. In fact, in the last 10 years they made operating profits of £651m, which have been largely offset by net financing costs of £523m.
The good news is that the cost of #MUFC debt has reduced following a series of refinancings from a horrific £117m in 2009 to “only” £18m in 2018. Coupled with explosive revenue growth, this means that financing costs have been cut from 42% of revenue in 2009 to just 3%.
#MUFC EBITDA (Earnings Before Interest, Tax, Depreciation & Amortisation), which can be considered as a proxy for cash operating profit, fell by £23m from last season’s record £200m to £177m, though this is still around double the £92m in 2012. Forecast is £175-190m for 2018/19.
Although #MCFC revenue “only” increased by 2% in 2017/18, this is not unusual in the second year of the Premier League TV deal. Since 2013 revenue has grown by an incredible £227m (62%) from £363m to £590m, due to commercial £124m and TV £103m. Forecast is £615-630m for 2019.
Based on 2016/17 figures, #MUFC had the highest revenue in the Deloitte Money League for the second year in a row, with their £581m revenue just above Real Madrid £580m, followed by Barcelona £557m and Bayern Munich £505m, though will be overtaken by Madrid in 2017/18 (€751m)
Somewhat disappointingly, #MUFC commercial income was basically flat at £276m, despite 7 new sponsorship deals including their first sleeve sponsor. That said, this revenue stream has grown by an impressive £124m (81%) since 2013.
#MUFC Chevrolet shirt sponsorship worth £58m a season ($75m at current exchange rates), while Adidas kit deal is an amazing £75m (though cut by 30% if fail to reach Champions League for 2 or more seasons). Aon pay £15m for training kit/facilities, Kohler £10m for sleeve sponsor.
Assuming that English TV pool was unchanged in 2017/18, #MUFC earned €39m from Europe for reaching the Champions League last 16, €6m less than the previous season when they won the Europa League by beating Ajax in the final. Champions League winners Real Madrid received €87m.
#MUFC wage bill grew £32m (12%) from £264m to £296m, mainly due to player salary uplifts related to Champions League participation plus 5 months of Alexis Sanchez, resulting in an increase in the wages to turnover ratio from 45% to a still very respectable 50%.
Of course, #MUFC £296m wage bill is also miles above the other leading clubs: Chelsea £220m, Liverpool £208m, Arsenal £199m and Tottenham £127m (though in fairness these are all 2016/17 figures).
#MUFC player amortisation, the annual charge to expense transfer fees over the length of a player’s contract, continued to rise, up 11% (£14m) from £124m to £138m, reflecting further investment in the squad (Lukaku, Matic, Lindelof & Sanchez in 2017/18).
#MUFC net debt increased by £41m from £213m to £254m, mainly due to £48m reduction in cash balance from £290m to £242m. In Sterling terms, gross debt was down £7m from £503m to £496m, though the USD debt remains unchanged. Amounts owed on transfers not disclosed (£179m in 2017).
Although it has reduced, #MUFC annual interest payment of £19m is a lot more than any other Premier League club with Arsenal being the only other club with a double-digit interest payment of £12m. To place that into perspective, Manchester City and Liverpool only pay around £3m.
On the other hand, #MUFC also have the highest cash balance of £242m, much more than most Premier League clubs. Tottenham’s £200m is misleading, as this is largely due to advances for their stadium development, leaving only Arsenal £180m as anywhere close.
#MUFC cash decreased by £48m, mainly because of a steep fall in cash generated from operating activities, due to timing of cash receipts on commercial contracts. Net £108m spent on players (purchases £155m, sales £47m). Another £22m paid out in dividends.
In last 9 years #MUFC have had an incredible £1.6 bln cash: operating activities £1.3 bln plus £318m share issue. £653m has been spent on players and £91m on infrastructure, but £784m used to finance Glazers’ investment: £461m interest, £248m debt repayments & £75m dividends.
Ed Woodward spoke of “continued strong long-term financial performance, which underpins everything we do and allows us to compete for top talent in an increasingly competitive transfer market.” That’s undoubtedly true, but will #MUFC now deliver on the pitch?
