This document provides a 3-sentence summary of a 15-page independent business review of Manchester United Football Club PLC: The review analyzes the club's history, financial performance, and forecasts, examines the Premier League market and competition, and was conducted by a student for a university case study on managing football clubs like businesses. While focused on Manchester United, the review also discusses key factors in managing professional football clubs and the general market conditions of the football industry. The student authored the review as part of developing expertise in football finance and sought feedback to further his understanding of the exciting sports business sector.

1. MANCHESTER UNITED FOOTBALL CLUB PLC
INDEPENDENT BUSINESS REVIEW
August 24th
2015
© Copyright by Karol Stępień
All rights reserved
(#)

2. MANCHESTER UNITED FOOTBALL CLUB PLC
INDEPENDENT BUSINESS REVIEW
INTRODUCTION
MARKET ANALYSIS
Market Overview
Premier League
Competition
THE CLUB
History
Business Review
Financial Analysis
FORECASTS
Forecasts and Scenarios
Valuation
3
5
6
9
16
23
24
30
41
52
53
59

3. Introduction
The following report was made by a student for University case study purposes. The aim
was show a reader that football industry is getting more professional every year and that
football clubs are being managed like ordinary companies. Although it is mostly about
one certain club, the report shows key factors of managing every professional football
club, crucial aspects of managing a company like this. One of chapters refers also to
general market condition of football industry.
The reason why Manchester United has been chosen as a topic is the fact that the Club is
listed on NYSE and it easier to find necessary financial information, not all that was needed
but at least something.
Football is Author’s biggest passion. While studying he discovered that that might be
possible to combine his passion with profession. He has written both BA and MA thesis
about finance in football, published two academic articles as a co-author. Finally was a co-
author of annually report that discusses financial condition of Polish football clubs. The
report is published by Ernst & Young.
Author tries to develop in the area of football finance, seeks for new things to learn about
the exciting industry of sports. Author is open for every advice and suggestion. Every kind
of comment is warmly welcomed.
Sincerely,
Karol Stepien
Contact Information:
Author Karol Stępień
Address Dąbrowszczaków 2/4
03-474 Warszawa
Telephone +48 660 40 49 86
Email Karol_Stepien@icloud.com
© Copyright by Karol Stępień
All rights reserved
3

5. MARKET ANALYSIS
Market Overview
Premier League
Competition

6. 7,4%
3,2%
9,0%
3,2%
6,9%
14,0%
6,0%
9,1%
5,2%
6,5%
2008 2009 2010 2011 2012
Revenue Growth Wages Growth
Business Overview
Football is the most popular sport in the world. As a business, thanks
to globalization and commercialization it became a huge business,
one of the biggest among sport’s disciplines. Football industry has
also bright future ahead.
Football industry was criticized for
overspending for many years. It was said
that clubs expenditures on wages and
transfers are unreasonably high. In fact
clubs were generating losses, and they still
are, and they probably will in the future.
This is also a nature of this industry. If the
club is profitable, fans are accusing owner
that all he wants is to squeeze the profit out
of the club and leave it. Football club may
not be profitable, but it should be able to
finance it own activity.
Club’s management seemed to understand
the problem of overspending and changes
may be seen now. According to UEFA
Benchmarking Report 2013/2014 Edition
financial year 2012 was the first one where
revenue growth rate was higher than
wages growth rate – 6.9% in comparison to
6.3%. Moreover, net loss generated has
decreased for the first time since 2008. It is
a huge loss – over €1bn, unacceptably
high, but it is still 36% less than in a
previous year.
It is expected that these figures will
improve thanks to introducing Financial
Fair Play.
Forecasts for Sports industry are positive.
According to A.T. Kearney’s Winning in the
Business of Sports in 2017 Sports market
value may reach almost $91bn, while in
2005 it was worth $46.5bn. Sports market
value is increasing with higher CAGR than
global GDP.
In terms of football, it is developing even
faster than sports in general.
Football industry is very competitive, many
clubs have huge desires while the winner is
always one and others have to lose. That is
way it is crucial to set long-term strategy
and do not think about next season only.
One great season in football is not enough
anymore.
Market Overview
Source: UEFA Benchmarking Report 2013/2014 (data for 237 clubs)
Revenue growth vs wages growth
-636
-1 163
-1 634 -1 670
-1 066
2008 2009 2010 2011 2012
Source: UEFA Benchmarking Report 2013/2014 (data for 237 clubs)
Net loss generated by European clubs (€m)
Source: Winning in the Business of Sports, A.T. Kearney
Sports market value ($bn)
46,5
58,4
76,1
90,9
2005 2009 2013 2017
2005-
2009
2009-
2013
2013-
2017
Sports market
growth rate
6% 7% 5%
Football market
growth rate
8% 9% 5%
6

7. Value Of Player
Market Overview
o Health status –
a player who has been
fighting with serious injuries
throughout his career, especially
the same kind of injury may be a
huge risk as a transfer.
o Nationality – English club would
have to pay a bigger price for an
English player than for a similar
overseas player. Additionally
some nationalities are valued
higher, like Argentinians
(they are considered to be
more talented).
Through less
obvious but still equally
important:
o Psychological
characteristic (player who
collect yellow and red cards
or underperforming in
important matches will have
a lower price tag),
o Marketing value of player
– potential shirt’s sales
boost or club’s crest
usage in ads with
a player etc.
It is worth to remember that in
many cases buying certain player
is not finish of a whole process of
assessing his value and whether he
will suit well to the team, but in
fact many times times
transfers have nothing to
do with sports/business
calculation. Many times
players are being bought
only because manger or
president really want him in
the club. Moreover
sometimes even fans can
have an influence on
club’s transfer policy
Players, or player’s registrations are definitely one
club’s most important asset alongside the stadium.
In some cases this may be the highest valued
asset club possess. However player’s
registration value in accounting books is
almost always undervalued.
Player’s registrations are presented in company’s
balance sheet as “Intangible assets”. The value of
each player registration is calculated separately and
it depicts two factors: value of contract and transfer
fee (if player was bought from different club for a
certain amount of money). Afterwards the value of
single registration is subject of amortization.
Amortization period is simply contract duration.
Consequence of that method is that registration
probably has nothing to do with real market
value. Until signing a new contract, single
registration’s value is lower every season while in
reality many times player’s value increase over
years. However it is impossible to assess the value
of certain player in few years time. This method of
calculation is correct according to IFRS standards.
There is no alternative method that maybe helpful
with evaluating player’s value, but there are portals
like transfermarkt.de where player’s potential market
value may be found.

8. Main Risk Factors
Football club operates as an ordinary company which means that its
activity has some risks. In football industry apart from risk factors
common in every company many other factors exist.
Risk factors connected with the characteristic of activity:
o Dependence on one certain source of revenue may lead to problems with budget if
source of revenue is lost. In Premier League many smaller clubs’ fate depend on
Broadcasting revenue. If a club is going to relegated from Premier League it will also lose
main source of revenue and may have problems repaying liabilities.
o Premier League is the entity that manages the league. One its main responsibilities is to
negotiate Broadcasting contracts. Clubs cannot sign their own contracts in terms of
Broadcasting which means that they have limited influence on a revenue source that
becomes more and more significant for club’s budget. Popular clubs like Manchester
United or Arsenal could have earned more if they have the opportunity to negotiate terms
of broadcasting deals on their own.
o High transfer fees and very liberal wages policy may lead to high indebtedness and
problems with liquidity. Both transfers fees and wages level are increasing over last
seasons with a significant growth rate.
Risk factors connected with on-pitch performance:
o High level of competitors – no matter how good the team is, there are only 20 places in
Premier League and every season three clubs will lose their place and will be relegated.
o Dependence on First Team performance – even though club employs even hundreds of
people, club’s well-being depends on performance of around 23 players of the First
Team. They are responsible for generating most of revenue, and weak performance may
very quick has its consequence in financial condition.
o If the club does not meet all requirements of domestic or European governing bodies, like
The FA or UEFA, may not be granted the license and that would mean the team cannot
compete in Premier League or European cups.
o Inappropriate behavior of fans or player may result in fines or points deduction.
Market Overview
8

9. Premier League – the company
Premier League was founded in 1992 and since that year it
provides emotions and excitements to fans not only in the UK
but also in almost every corner of Earth.
Premier League is a company which main
objective is govern the League. It is fully
owned by 20 clubs that compete in Premier
League every season. This means that
every club has equal right to introduce
their own idea and defend their own
benefits. No matter whether this is Chelsea
or Crystal Palace, everyone’s vote has the
same value.
Since the first season Premier League
became the highest valued football league
and is considered as one of the best
football league in the world. Now Premier
League games are broadcasted in around
212 countries by 80 different broadcasters.
The TV audience reached 4.7bn. Premier
League matches may be seen in over 643m
homes from Los Angeles through London
to Macau.
The company’s goal is to set level of game
at highest possible level, encourage best
players to play for English clubs and
develop level on lower divisions and
investing in youth. Premier League is giving
away approx. 11% of turnover every
season.
Premier League is operating in dynamic
environment where many stakeholders
have influence on how the business will
look like:
Premier League
Club Stadium Name Capacity
Average
Attendance
Utilization City Population
Man Utd Old Trafford 75 731 75 335 99% 520 215
Arsenal Emirates Stadium 60 432 59 992 99% 8 630 000
Newcastle St James' Park 52 405 50 359 96% 289 835
Man City Etihad Stadium 55 000 45 365 97% 520 215
Liverpool Anfield 45 552 44 659 98% 466 415
Sunderland Stadium of Light 49 000 43 157 88% 174 286
Chelsea Stamford Bridge 41 798 41 546 99% 8 630 000
Everton Goodison Park 40 221 38 406 95% 466 415
Spurs White Hart lane 36 284 35 728 98% 8 630 000
West Ham Upton Park 35 016 34 846 100% 8 630 000
Aston Villa Villa Park 42 682 34 133 80% 1 092 330
Leicester City King Power Stadium 32 262 31 693 98% 337 653
Southampton St Mary's Stadium 32 689 30 741 94% 253 651
Stoke Britannia Stadium 27 743 27 081 98% 249 008
Norwich Carrow Road 27 244 26 169 96% 140 452
West Brom The Hawthorns 26 850 25 064 93% 75 405
Crystal Palace Selhurst Park 26 309 24 421 93% 8 630 000
Swansea Liberty Stadium 20 827 20 555 99% 239 000
Watford Vicarage Road 21 577 16 664 77% 90 301
Bournemouth Vitality Stadium 11 700 10 265 88% 183 491
Source: Own research (attendance for season 2014/2015
Premier League clubs – 2015/2016 preview
Source: Based on The Guardian research
Revenues in Premier League 2013/2014
433
347
325
304
256
181
130 121 117 115 106 104 99 98 94 91,2 89 87 84 83
41
-23
15
5
1
80
19
28
-4
10
29
-17
1 4
9
-33
23
13
9
-12
-40
-20
0
20
40
60
80
100
0
50
100
150
200
250
300
350
400
450
500
ManUtd
ManCity
Chelsea
Arsenal
Liverpool
Spurs
Newcastle
Everton
AstonVilla
WestHam
Southampton
Sunderland
Swansea
Stoke
Norwich
Fulham
CrystalPalace
WestBrom
HullCity
CardiffCity
Revenues Profit before Tax
Domestic and
international federations
Commercial Partners
Fans
Domestic and international
TV Broadcasters
Clubs
9

10. Premier League – the league
Premier League 2013/2014 season was special when it
comes to financial aspects. 20 clubs that compete in the
league generated profit for that financial year.
This is the first time when clubs generated
combined profit of £198m. Only five clubs
showed their results in red. This is a major
difference when compared to 2012/2013
season when combined loss amounted to
£291m.
That all could happen due to revenue
boost in Premier League and introducing
Financial Fair Play rules to the league. Since
2010/2011 season revenue has risen by
56% and now annual growth rate is
expected to be higher then ever before
thanks to new TV deal and many
commercial partnerships negotiated
individually by clubs. Premier League has
left behind other European leagues like
Bundesliga or La Liga. Premier League, in
terms of revenue, was always first but now
distance is becoming to be really big.
Premier League
Financial Fair Play
Premier League
Financial Fair Play was first introduced by
UEFA in Champions League and Europa
League in 2013/2014 season. Premier
League governing bodies decided to
implement FFP regulations into Premier
League as well. Starting from 2013/2014
season Premier League clubs have to obey
certain rules:
Net loss:
o Net loss from last three season cannot
exceed £105m if owner decide to inject
equity,
o Net loss from last season cannot exceed
£15m if owner decide not to inject
equity.
Wages:
o No restrictions if wages are below £52m,
o Above £52m wages can rise only £4m
per season plus the amount of increased
commercial deals revenue.
If club does not complies with rules points
can be deducted, plus more sanctions are
to be introduced.
Source: Based on Deloitte’s data
Revenue in selected European leagues (€bn)
3,9
2,3
2,0
1,7
1,5
Premier
League
Bundesliga La Liga Serie A Ligue 1
Source: Based on Deloitte’s data
Premier League clubs’ revenue and growth (€bn)
2,5
2,8 2,9
3,9
2010/2011 2011/2012 2012/2013 2013/2014
10

11. Equality And Records
It seems that a key to Premier League success is not only popularity
of football in the UK but also money distribution model between
clubs. Fair model leads to equality and sustainable growth.
Three factors have an impact on how much
money will a single club earn during a
season: Number of televised games, place
in league and equal share. In Premier
League share ratio (difference between
best earner and worst earner) is the best, in
terms of fairness, among other European
leagues. Distribution model leads to the
fact that best club gets only 1.52 of what
the worst club gets. In other leagues the
ratio shows higher differences. In La Liga
Spanish giants Barcelona and Real Madrid
get even 11x more than the smallest clubs.
This is the consequence of individual
contracting in Spain football. What is more,
money earned from overseas Broadcasting
is also shared in equal way.
Premier League
94 89 97 93 98 90 85 81 79 78 76 75 74 73 71 69 68 68 67 64
46 47 37 28 4 0 3
Premier League European Cups
Source: Based on data provided by Premier League, UEFA and The Guardian
Broadcasting revenue in Premier League 2013/14 (£m)
League Share ratio Distribution model
Premier League 1.52 Equal share, Place, Televised games
Serie A 5.25
Equal share, Place, Historical results, City
Population, Supporters Index Element
Ligue 1 3.2
Equal share, Place, Televised games,
Historical results
La Liga 11.7 Individual contracts
Bundesliga 2.0 Points accumulation system from 3 seasons
Source: Own research
Broadcasting in selected European leagues
191
670
1 200 1 024
1 706 1 773
3 018
5 136
1992-97 1997-01 2001-04 2004-07 2007-10 2010-13 2013-16 2016-19
Source: Based on BBC data
Premier League Broadcasting deals (£m)
2012-2015 2015-2018
Group Stage 8.6 12
Group Win 1 1.5
Group Draw 0.5 0.5
Round of 16 3.5 5.5
Quarter Final 3.9 6
Semi Final 4.9 7
Runner-up 6.5 10.5
Winner 10.5 15
Source: Based on UEFA data (€m)
Champions League new distribution model
Current distribution model provides
smaller and less popular clubs with
necessary money to keep up with big firms
from Manchester or London. The chances
of signing better players are higher and
overall the differences on the pitch are
smaller and League becomes more
competitive.
Moreover high level of competition (every
single club) leads to higher attractiveness
of Premier League and this reflects in
another record-breaking deal for the years
2016-2019. £5.1bn from domestic TV
operators means a crucial change and
clubs will significantly boost their revenue
pushing especially smaller clubs up to a
higher level. Transfers like Cabaye (from
PSG to Crystal Palace), Ayew brothers
(from Ligue 1 to Villa and Swansea) or
Payet to West Ham from Marseille are a
consequence of new TV deals.
Summing up, new broadcasting deals will
boost clubs’ accounts. But it is distribution
model that makes Premier League
different from other leagues and a factor
that makes Premier League most
competitive league in the world. It is also
worth to note that from 2015/2015 season
revenue from Champions League will also
rise.
11

12. Brand Attractiveness
For season 2013/2014 accounts show that Commercial activity
revenues amount to £915m. Among other European leagues Premier
League clubs secure the highest contracts.
£915m Premier League clubs have earned
during 2013/2014 season. This stands for
£46m on average. However only six clubs
presented higher figures in this segment
and could be called as big six because the
difference between sixth Tottenham and
seventh Aston Villa is around 80% and
clubs like Manchester United or
Manchester City are way further with
generated revenue. Top six clubs earn 78%
of total League’s revenue. It is also possible
to state that that there is a relation between
time spent in Premier League and level of
Commercial revenue. Clubs like Cardiff,
Hull City or Southampton are clubs that
were competing in lower divisions and they
may be considered as not that popular.
Clubs like Chelsea, Arsenal or Liverpool
are extremely popular not only in the UK
but in the whole world. These clubs are
targets for partners who are looking for a
global brand as marketing tool.
It should be noted that probably these
figures for seasons 2014/2015 and
2015/2016 will rise significantly thanks to
popularity of Premier League clubs. Recent
contracts will boost revenue: Arsenal with
Puma, Liverpool with New Balance,
Chelsea with Yokohama Tyres and record-
breaking deal between Manchester United
and Adidas will be the most important
change factors.
This is also important that Premier League
clubs are more popular than clubs from
other leagues. In terms of shirt sponsorship
Real Madrid, Bayern Munich or even
Barcelona cannot meet Premier League
standards, Manchester United earns almost
twice of what Spanish giants earn.
Moreover only Bayern Munich gets high
revenue from kit partner. However it should
be noted that Adidas is a shareholder of
German champions.
It is expected that Premier League clubs
will remain first position in terms of
Commercial revenue. All deals are long-
term while in less popular leagues
contracts are less lucrative and short-term
(even for a half of season). However there
are questions whether Premier League and
football as a whole still be as popular as
now.
Premier League
Source: Based on The Guardian research
Commercial revenues in Premier League 2013/2014 (£m)
189
167
114
104
83
56
31 26 21 17 15 15 14 12 11 11 10 9 6 4
46
Revenue (£m) Average
44 40
30
25 25 25
20 20
Source: Based on The Independent research
Highest shirt sponsorship deals as of 08.2015 (£m)
75
65
30
50
27 31 34
12
Source: Based on The Independent research
Highest kit deals as of 08.2015 (£m)
12

13. Fan base
Matchday revenue is lower than Broadcasting or Commercial,
however it is still extremely important source of revenue. Clubs’
stadiums are full of fans but supporters complain about ticket prices.
Likewise Commercial revenue, in terms of
Matchday again there are six clubs that
present revenue higher than league’s
average. Of course main impacts on the
level of revenue are number of matches
and stadium capacity so clubs have quite
limited options to increase significantly
inflows from this segment. Premier League
surely do not have a problem with
attendance on matches. Only German
Bundesliga has higher average attendance
among European leagues, but it should be
noted that German clubs benefit from
stadiums that have been built for FIFA
World Cup 2006. However Premier League
is the best league in terms of stadium
utilization. Most of clubs reach attendance
of 99% of stadium capacity.
Unfortunately supporters demonstrate their
anger that comes from ticket prices.
Historical data shows that even though in
Italian Serie A average season ticket prices
are higher than in Premier League there is
a huge barrier when it comes to the
cheapest tickets. In all major leagues
average prices are more then two times
lower when compared to Premier League.
For most of fans this may be significant
problem because they could simply be
unable to afford season ticket for their
clubs’ games.
Clubs also show various strategies in terms
of ticket prices. For example Manchester
City cheapest ticket is the cheapest one in
league but the most expensive one is third
most expensive season ticket. Liverpool’s
tickets’ prices range is really small, from
£710 to £869.
Moreover, for example Crystal Palace’s
most expensive ticket cost £145 more than
Chelsea’s. On this background,
Manchester United ticket prices are on
reasonable level.
Due to limited possibilities to increase
Matchday revenue is becoming less and
less important source of revenue. It is still
crucial for the business though. What
would football be without stadium full of
fans?
Premier League
Source: Based on The Guardian research
Matchday revenues in Premier League 2013/2014 (£m)
468
233 207 165
865
801
549
1655
Premier League La Liga Bundesliga Serie A
108
100
71
51 47
35
26
19 19 17 16 13 12 12 11 9 9 8 7 7
30
Source: Based on The Guardian research
Average season ticket prices in European leagues in
season 2012/2013 (£)
Source: Based on Sky Sports research
Season ticket prices in Premier League 2015/2016 (£)
0
250
500
750
1000
1250
1500
1750
2000
2250
Arsenal
AstonVilla
Bournemouth
Chelsea
CrystalPalace
Everton
Leicester
Liverpool
ManCity
ManUtd
Newcastle
Norwich
Southampton
Stoke
Sunderland
Swansea
Spurs
Watford
WestBrom
WestHam
13

14. Major Expenditure
With wages/revenues ratio at a level of 59,6% it should be said that
Premier League clubs are managed better every year, it is probably
also a consequence of introducing Financial Fair Play rule into
Premier League.
Indebtedness and extraordinarily high
wages were source of problems for many
Premier league clubs, but it is also a
common thing across other European
leagues. Due too acquisitions and
takeovers in the league many clubs ended
up with large portion of debt, like Chelsea
or Manchester United. Despite high level of
loans and borrowings those clubs are still
far from going bankrupt because loans are
secured or come from the owner. English
clubs, in terms of indebtedness are far from
the state that can be seen in Spanish La
Liga where many clubs are technically
bankrupts. In Premier League clubs like
Crystal Palace, Norwich or Swansea
present no net debt or very low level of it.
Still an average Premier League club has a
net debt of £79m but the situation in this
case isbetter every year.
In the season 2013/2014 Premier League
clubs have spend nearly £1.9bn on wages
what reflects in £95m per club. Even
though wages are rising, clubs know that
soon revenue will increase significantly. Still
six clubs presented Wages/revenue ratio
above 60% with Fulham reaching 76%
which may cause problems in the future.
It is worth to note that all clubs that present
wages level above £100m also generate
wages/revenue ratio below 60% which
means that employee expenses are
managed in reasonable way. Once again it
is easily seen how Arsenal, Man Utd, Man
City and Chelsea are far away from the
competition. Level of wages they spend on
staff is even 2x higher than average.
Majority of clubs spend from £45m to
£65m annually.
Premier League
Source: Based on The Guardian research
Wages in 2013/2014 Premier League (£m)
166
6953
192
466969
144
205215
785463617063
100
436564
55%
59%
64%
59%
52%
57%
76%
56%
59%
50%
60%57%59%
62%
67%
64%
55%
51%
75%
56%
0%
10%
20%
30%
40%
50%
60%
70%
80%
0
50
100
150
200
250
Wages Wages/Revenue
Source: Based on The Guardian research
Net debt in Premier League 2013/2014 (£m)
14

15. Ownership structure
Nowadays football clubs operates like normal companies, most of
them as private limited companies (plc). The process of
commercializing football industry led many clubs to become a part
of bigger holdings.
Source: Based on theoffshoregame.net (08.08.2015) and own research
Premier League Clubs’ Ownership
Recent changes in clubs’ ownership
structure shows that 9 Premier League
clubs are owned by overseas holdings.
Other clubs are owned by private investors,
from the UK or overseas. Roman
Abramovich is the most famous owner
since buying Chelsea in 2003. Clubs like
Arsenal or Liverpool are parts of holdings
that posses other sports clubs around the
world. Kroenke Sports & Entertainment
(Arsenal major shareholder) has in its
portfolio clubs from NBA or NHL.
Research carried out by The Offshore
Game leads to conclusion that 28 football
clubs in England have overseas owners.
The are two reasons why this kind of
situation occurred: Premier League is a
very popular product everywhere around
the world and investors see the growth
potential in clubs. Second reason is tax
avoidance.
Current state is often criticized by experts
and fans. Fans don’t want to see their
beloved clubs as ordinary companies that
are taking care of accounts and profits.
Experts point out that many overseas-
owned clubs are not managed in a
reasonable way. Owners finance clubs
through loans, not through raising Equity.
This leads to high levels of debt and when
owner decides to leave, that clubs may be
left on the verge of going bankrupt.
Moreover new owners are accused of not
understanding what is Premier League and
want results here and now
It is also said that German Bundesliga rule
“50%+1” provides stabilization and
sustainable growth. The rule says that no
single entity can own major stake at club.
“50%+1” shares have to belong to Club’s
Members. Only if one entity is supporting
the club for 20 years Bundesliga may allow
to rest of shares to buy by the single
company. WfL Wolfsburg and Bayer
Leverkusen are owned by Volkswagen and
Bayer, respectively. Similar situation is in
Spanish La Liga where clubs belong to
socios.
Premier League
Club Offshore Holding Jurisdiction
Arsenal KSE UK Inc. USA
Aston Villa Reform Acquisitions LLC USA
Bournemouth AFCB Enterprises Limited N/A
Chelsea Private investor UK
Crystal Palace Private investors UK
Everton Private investors UK
Leicester City King Power International Thailand
Liverpool UKSV I LLC USA
Manchester City
Abu Dhabi United Group
Investment and Development
Abu Dhabi UAE
Manchester United Manchester United PLC Cayman Islands
Newcastle United Private investor UK
Norwich City Private investors UK
Southampton Private investor UK
Stoke City Private investors UK
Sunderland Drumaville Limited Jersey
Swansea Private investors UK
Tottenham ENIC International Bahamas
Watford Private investors UK
West Brom Private investors UK
West Ham United Private investors UK
9
Clubs have
overseas
owners
15

16. Premier League Map 2015/2016 Season
Every season 20 clubs compete
to become Champions of
England. Current Title holder is
Chelsea. Clubs holding places
18-20 are being relegated to
lower division – Championship.
At least 5 clubs can win Premier
League this season which means
some desires will not be fulfilled.
Moreover, one of top clubs will
not secure a place in Champions
League what reflects in a
significant loss of revenue.
Three clubs will be relegated to
Championship and will lose
crucial source of revenue –
Broadcasting and probably
Commercial revenue will be
slightly lower.
Season 2015/2016 should be
extremely interesting for fans
which is good for the English
football industry as whole.
Premier League as a product will
become even more desirable
and high-valued. Many clubs
completed expensive signings,
current transfer window may be
record-breaking in terms of
transfer spending.
In Premier League every club is
seeking for glory, both on-the-
field and off-the-field.
Competition
Premier League is considered as the best football league in a world.
Thanks to high level of each team the competition is extremely fierce
during 38 rounds of the season.
Market Analysis
# Club Games Wins Draws Losses Points
1 Chelsea 38 26 9 3 87
2 Manchester City 38 24 7 7 79
3 Arsenal 38 22 9 7 75
4 Manchester United 38 20 10 8 70
5 Tottenham 38 19 7 12 64
6 Liverpool 38 18 8 12 62
7 Southampton 38 18 6 14 60
8 Swansea City 38 16 8 14 56
9 Stoke City 38 15 9 14 54
10 Crystal Palace 38 13 9 16 48
11 Everton 38 12 11 15 47
12 West Ham United 38 12 11 15 47
13 West Bromwich Albion 38 11 11 16 44
14 Leicester City 38 11 8 19 41
15 Newcastle United 38 10 9 19 39
16 Sunderland 38 7 17 14 38
17 Aston Villa 38 10 8 20 38
18 Hull City 38 8 11 19 35
19 Burnley 38 7 12 19 33
20 Queens Park Rangers 38 8 6 24 30
Premier League 2014/2015 Season
380
Games
20
Clubs
4
Champions
League Places
1
Winner
16

17. MANCHESTER CITYCHELSEA
Manchester City lost title last season and now
what to take it back. The squad is full of top
class players like Sergio Aguero, Yaya Toure or
David Silva. Raheem Sterling and Fabian Delph
will only set the bar even higher. With financial
help of Abu Dhabi United Group the club is
stronger the ever before and is able to sign
anyone they want.
£347m of revenue place them second, just
behind Manchester United, but the distance is
still significant - £86m. As 2013/2014
champions the Citizens cashed £133m. The
team is becoming more popular and number of
televised games is expected to rise. £167m of
Commercial revenue can always rise due to
corporate bindings with ADUG. Important news
is expanding Etihad Stadium’s capacity form
47400 to 55 000 seats. This ensures club will
earn more than now – £47m Matchday revenue.
This result was significantly lower than club like
Man Utd or Arsenal.
Manchester City potential seem to have no
limits, no one knows how far the club may get.
45.4
Average attendance
(‘000)
£347m
Revenue Main partner
ARSENAL
41.5
Average attendance
(‘000)
£325m
Revenue Main partner
60.0
Average attendance
(‘000)
£304
Revenue Main partner
Experts are pointing out that this time Arsenal is
a mature team that finally can finish first and
become champions of England again. Only one
major signing has been completed – Petr Cech
came from Chelsea. With Alexis Sanchez, Mesut
Ozil and Jack Wilshere healthy and in good
form they are able to become Premier League
champions for the first time since 2003/2004.
After moving from Highbury to brand new
Emirates Stadium Matchday revenue now
reaches up to £100m. This is one of the best
results in Premier League. New deals with
Emirates and Puma will help to increase £83m
from Commercial revenue in 2013/2014 season.
Arsenal finishes in top 4 for many years and
regularly compete in Champions League what
is a stable source of Broadcasting revenue –
£121m. Arsenal is always an example of well-
managed club, but it should be noted that after
finishing property-related activities results are
not as good as they used to be however still
remain black - £5m for 2013/2014.
Chelsea will start 2015/2016 season as title
holder and fans are expecting that the trophy
will stay at Stamford Bridge for the next season.
Club’s management decided not to strengthen
team significantly. Radamel Falcao is on loan
from Monaco and his form is under question
mark. Asmir Begovic will probably be only a
replacement for Thibaut Courtois. Still this is
one of the strongest squad in the league. And
charismatic manager.
The Blues presents 3rd highest revenue. They
reached semifinals in Champions League and
that reflects in £140m from TV Broadcasting.
Commercial revenue will grow significantly after
replacing Samsung with Yokohama Tyres as Kit
sponsor. The new deal is worth around £40m
per season and is the second highest deal in the
Premier League. Matchday revenue is as high as
it can get with that stadium capacity. 99%
utilization rate secures £71m revenue for
Chelsea. And of course Roman Abramovich is a
great financial asset for the club, that will
provide a world class signing if necessary.
Chelsea is a potential Premier League
2015/2016 champion.
* Revenues are for 2013/2014 season
** Attendance is for 2014/2015 season
17

18. Southampton is that one example that shows
money doesn’t play on the pitch. After entering
Premier League in 2011/2012 season they don’t
stop to surprise. They avoided relegation, they
finish 7th last season, they spent majority of
season in top 4 as well. And all of this after
selling best players.
Club earned hug amount of money after
departures of Adam Lallana, Luke Shaw, Dejan
Lovren, Nathaniel Clyne and others.
£106m of revenue allows Saints to secure 11th
place in Premier League with only £10m of
Commercial revenue. Club has a lot to do in
terms of expanding the brand awareness. Still
big transfers allowed to generate £29m of pre-
tax profit – 3rd result in the league.
LIVERPOOL
SWANSEA CITY
TOTTENHAM HOTSPUR
SOUTHAMPTON
Is 2015/2016 season will be another great one
for Swansea? The only club in Premier League
that is located in Wales finished 8th last season.
The club seems to be in a good shape, when it
comes to on-the pitch performance as well as
off-the-pitch results.
Club is owned by the fans in 20%, the manager
is Swansea’s legend. Transfers of players like
Andre Ayew (still young, but with Champions
League experience) shows that this season may
be even better.
From financial perspective Swansea will surely
break the barrier of £100m of revenue. Club has
a lot to do in terms of increasing both Matchday
and commercial revenue, both categories are
below £10m and that is one of the worst results
in the league. The Swans managed to generate
pre-tax profit though - £1m.
Fans at Anfield are wondering how life “after-
Gerrard” will look like, but the future may be
very positive. Even though Liverpool lost
Raheem Sterling the striking force is amazing:
Benteke, Sturridge, Coutinho, Firmino.
After changes in ownership structure club has
more ambitious plans, stadium expansion is
underway. With £256m of revenue they hold 5th
place but after new deal with New Balance their
Commercial revenue will rise significantly (it
amounted to £101m for season 2013/2014,
more than Arsenal for example). Only Matchday
revenue is much lower than in other big clubs
but after the stadium’s expansion it will no
longer be a problem.
This season can still be a disaster for a club like
Liverpool – no Champions League qualification.
Spurs, located in Northern London, shows
ambitions to be a regular in Champions League.
Unfortunately after Harry Redknapp and Gareth
Bale’s departure club finds it hard to get a 4th
place, they finished 5th 2014/2015 campaign.
In terms of revenue they see the back of well-
known clubs. Spurs already presented schemes
of the new stadium that will help to increase
Matchday revenue, yet club should find a way to
get higher level of Commercial.
Tottenham present low quality transfer policy,
so far Roberto Soldado and Erik Lamela are
huge disappointments. Yet still Spurs has a
amazing asset in their team – Harry Kane. He is
able to deliver 30 goals per season and in the
future can be sold with bigger price tag than
Raheem Sterling.
30.7
Average attendance
(‘000)
£106m
Revenue
Main partners
35.7
Average attendance
(‘000)
£181m
Revenue
Main partners
44.7
Average attendance
(‘000)
£256m
Revenue
Main partners
20.6
Average attendance
(‘000)
£99m
Revenue
Main partners
18

19. It seems that Everton is a typical 6-10 club.
Always ready to make a surprise by winning
with Man Utd or Chelsea but always fail at the
end. However club was restructured by David
Moyes over 9 seasons and now his successor –
Roberto Martinez – is introducing his own
management style. After signing big names last
season (Lukaku, Barry etc.) Everton wasn’t active
this year on transfer market.
In terms of financials, Everton is 8th with £121m
of revenue and managed to generate £28m of
pre-tax profit. £19m of Matchday and £14m of
Commercial revenue means that Blue part of
Merseyside is an average Premier League club.
Fans are looking forward to beat opponents
from Liverpool again and are hoping that
players like Stones, Barkeley or Coleman will
stay in the club.
CRYSTAL PALACE
WEST HAM UNITED
STOKE CITY
EVERTON
The Hammers finished 12th last season which
was not a disappointment, but also not
something special. Now both the club and fans
are looking forward to the new season.
Expectations are bigger because of Slaven
Bilic’s arrival and Andy Carroll’s finally
becoming fit again. The striker could make a
deadly duo with Enner Valencia. Also a transfer
of Dimitri Payet is promising.
In terms of financials West Ham is also in the
shadow of bigger names like Arsenal, Chelsea
or Tottenham. Revenue is around £115, but 64%
comes from Broadcasting.
Matchday revenue is 8th biggest in Premier
League, but in this field of activity The Hammers
will probably improve after moving to Upton
Park to the Olympic Stadium
The Eagles are fourth from the bottom in terms
of revenue – only £89m – they are doing pretty
well on the field. Since Alan Pardew came in to
the club team started to perform better and
finished 10th. Now, after Yoan Cabaye reunion
with Pardew expectations are even bigger.
Crystal Palace operates in London, it is obvious
they find it hard to compete with bigger
opponents like Arsenal or Chelsea, Matchday
revenue is low, Commercial is also only £6m.
Transfers of players like Cabaye were possible
thank to Broadcasting. Club has now chance to
become world-known brand from marketing
point of view because the competition in
London is just too big.
However it is worth to note that club is doing
better then its accounting books say.
Just like Swansea, Stoke will be looking for
braking £100m revenue barrier this season. On
the pitch they should find their place
somewhere in the middle (they finished 9th last
season), they may be looking for Europa
League. And interesting fact is that Stoke was
considered as not-so-pretty-playing team with
rather low skills, but they have Ibrahim Afellay
or Bojan, former Barcelona players that will
have an influence on team’s performance
(interesting fact is that after signing Shaquiri
Stoke has more Champions League winners
than Arsenal, Liverpool and Man City together)
In terms of revenue only six clubs generated
smaller inflows. Unfortunately fans from Brittania
(said to be “the loudest” fans in England)
generated no more than £7m which is a really
low result. Commercial revenue puts them on
12th position when compared to others.
38.4
Average attendance
(‘000)
£121m
Revenue
Main partners
27.1
Average attendance
(‘000)
£98m
Revenue
Main partners
24.4
Average attendance
(‘000)
£89m
Revenue
Main partners
34.8
Average attendance
(‘000)
£115m
Revenue
Main partners
19

20. Fans would be delighted to see a team from the
90s, with Alan Shearer up front. Unfortunately
these times are past, still St. James’ Park is full of
fans. £26m of Matchday revenue is 7th in
Premier League and attendance is 3rd in the
league. Moreover from financial point of view
Mike Ashley (the owner) is doing perfectly fine -
£19m compared to only £130m gives ROS of
14.6%.
Unfortunately transfer policy can be questioned,
many players are underperforming. Not long
ago Newcastle was fighting for Champions
League qualification and last season they
avoided relegation with a piece of luck.
Now with new manager fans are hoping to get
in the higher part of the table.
LEICESTER CITY
SUNDERLAND
WEST BROMWICH ALBION
NEWCASTLE UNITED
Another club, apart from Newcastle, from
Northern England. Almost been relegated last
season with only three points more than 18th
club.
What is definitely a positive is 6th position in
terms of attendance, thanks to capacity of
Stadium of Light. On the other hand only £16m
of Matchday revenue suggest that Club may
find it hard to keep fans on stands by a different
way than reducing ticket prices.
Sunderland may benefit from its location. Only
Newcastle is close which means that those clubs
are good marketing targets. £17m is more than
Everton or Southampton.
What is an absolute “must” for Sunderland is
securing a place in Premier League for
2016/2017 season. Everything above this will be
a big surprise.
They finished 14th last season which was a
success because Foxes were looking only to
avoid relegation. Moreover fans will remember
a victory 5-3 against Man Utd.
They operate in the centre of England where
not many competitors are located. Thanks to
this Leicester City can present a quite good
average attendance – just 4000 below average.
Not much is known about their financials. Surely
they got much from Broadcasting what was
crucial for a club that played in the
Championship before. Leicester spent £7m for
Shinji Okazaki from Mainz. New manager,
former Chelsea coach Claudio Ranieri has a
great challenge ahead.
Premier League club’s accounts for 2013/2014
season shows that only Hull City and Cardiff City
generated lower level of revenue, but they no
longer compete in Premier League. Definitely,
West Brom is one of the smallest club in Premier
League. Only thanks to Broadcasting revenue
club was able to compete with others. £11m in
Commercial segment was one of the worst
results in the league, while £9m from Matchday
was definitely the worst figure.
Unfortunately, with low level of revenue and
relatively high wages wages/revenue ratio is
also on a dangerous level – 75% - way too high.
If the new striker – Rickie Lambert - finds his
form from Southampton era and Saido Berahino
has another good season, West Brom should
remain in Premier League for 2016/2017
season.
50.4
Average attendance
(‘000)
£130m
Revenue
Main partners
25.1
Average attendance
(‘000)
£87m
Revenue
Main partners
31.7
Average attendance
(‘000)
N/A
Revenue
Main partners
43.2
Average attendance
(‘000)
£104m
Revenue
Main partners
20

21. Norwich is coming back to Premier League after
one year spell in Championship. The Canaries
are one of the smallest clubs in the league and
they will be looking for a safe place above
relegation zone.
Also in terms of revenue club may be
considered as a small, only five clubs present
lower level of revenue. Club present small
amount of Matchday revenue, but this is not a
surprise – Carrow Road is one of the smallest
stadiums in the league. Yet club has generated
profit for 2013/2014 season and finance its
activity by a stable sources – net debt is
amounting to 0.
Fans will be looking for a good season of
Nathan Redmond, but will that be enough?
BOURNEMOUTH
WATFORD
ASTON VILLA
NORWICH CITY
Watford spent last season in the Championship
and now they are pointed out as potential
candidate for relegation. Their last two seasons
in Premier League ended just after 38 rounds
and this season may be no different.
One of the lowest average attendance in
Premier League, weak brand awareness and
city’s small population reflects probably in low
Matchday and Commercial revenue so surely
Broadcasting will boost club’s financials.
Watford brought in some well-known names so
they will fight to remain in Premier League, but
will that be enough to achieve this goal.
Bournemouth is an absolute debutant in
Premier League and everyone is wondering
how will they perform. Experts point out that
they have chances to secure place for next
season Premier League games.
Not much is known about Bournemouth
financials, but club seems to be in a good
shape, mostly thanks to owner, Russian
entrepreneur Maxim Demin. Now they also
have secured huge income from Broadcasting.
A disadvantage is a small stadium – the smallest
one in Premier League. Moreover the utilization
rate is one of the lowest in league as well (88%).
Signings like Tyrone Mings show that
Bournemouth is seriously thinking of staying in
Premier League for next few seasons.
Club from Birmingham is one of the famous
clubs of Premier League. Unfortunately last
season club was close to be relegated and
finished 17th. Yet in terms of revenue the Villans
holds 9th place. They collect £31m Commercial
revenue, more than Newcastle or Southampton.
They operated in big city and they benefit from
this.
With Tim Sherwood in charge Aston Villa
started to play better but still far from fans’
expectations. Now the question is how they are
going deal with rivals without striking force of
Christian Benteke and engine of Fabian Delph.
Experts point out Villa as a candidate for places
18-20.
The are also rumors that club may change the
owner.
26.2
Average attendance
(‘000)
£94m
Revenue
Main partners
34.1
Average attendance
(‘000)
£117m
Revenue
Main partners
10.3
Average attendance
(‘000)
N/A
Revenue
Main partners
16.7
Average attendance
(‘000)
N/A
Revenue
Main partners
21

22. Fan Base Potential Marketing Potential Sports Potential Budget Potential
Arsenal 2 2 2 2
Chelsea 2 2 2 2
Liverpool 2 2 2 2
Manchester City 2 2 2 2
Man United 2 2 2 2
Tottenham 1 1 2 2
Aston Villa 1 1 1 1
Everton 1 1 1 1
Newcastle United 1 1 1 1
West Ham 1 1 1 1
Southampton 0 1 1 1
Sunderland 0 1 0 1
Swansea City 0 1 1 0
Crystal Palace 0 0 1 0
Stoke City 0 0 1 0
Bournemouth 0 0 0 0
Leicester City 0 0 0 0
Norwich City 0 0 0 0
Watford 0 0 0 0
West Bromwich Albion 0 0 0 0
Competition
Market Analysis
Key:
High
Medium
Low
22

23. THE CLUB
History
Financial Analysis
Business Review

24. Club’s history
How it all began
6th of February
Busby babes
26 years of glory
What lies ahead

25. In 1878 one of the best football clubs in the world played its first match
Workers form a football club at
Newton Heath
By Karol Stepien
The club we know
today as Manchester
United was first
formed in 1878 under
the name of Newton
Heath LYR. All the
players that played for
the club then all
worked in one
department – Carriage
and Wagon at Newton
Heath area. At first
they were playing
only against other
departments of
Lancashire and
Yorkshire Railway
and other railway
companies.
Even though the first
football league was
formed in 1888 as The
Football League
Newton Heath did not
compete and waited
until 1982 to make
their debut in the
league.
What is quite common
nowadays in football
industry was also
know to newly formed
club – financial
problems. Newton
Heath nearly went
bankrupt, but thanks
to John Henry Davies
club was saved. With
new owners and new
ground club also have
changed its name.
Few options were
considered and
among them was the
one we know today –
Manchester United
Football Club. And the
new era began…
The Three Crowns was used as an unofficial headquarters and
changing facilities for Newton Heath LYR FC in the late 1800s.
Newton Heath in their 1902/1903 season
I. Alexander Graham Bell demonstrates
the telephone to Queen Victoria,
II. The University of London becomes the
first in the UK to admit women on equal
terms with men,
III. Cyprus Convention: The Ottoman
Empire cedes Cyprus to the United
Kingdom but retains nominal title,
IV. Konrad Korzeniowski, the future
novelist Joseph Conrad, sets foot on
English soil for the first time, at
Lowestoft from the SS Mavis.
Back in 1878 newspapers were also
writing about…
With the change of
the name, club also
changed team’s
colors from gold and
green to red and
white as we know it
now. Manchester
United have won its
first out of 20
League titles in
1908. In 1910 the
team have moved
from Bank Street
ground in Clayton to
Old Trafford. New
ground was funded
by John Henry
Davies, who decided
that Champions of
England need a new
place to host their
games.
Since the debut in 1888 few things have
changed

26. 6th of February
History of Manchester United is full of bright and positive stories however
club experienced also dramatic stories. United opened 1957/58 season
with talk of a treble - The League, the FA Cup and the European Cup. But
fate had decided it was not to be.
On 6 February 1958 the British European
Airways plane carrying team home from
Belgrade crashed on takeoff in Munich and the
consequences were tragic and devastating.
Manchester United team were on their way back
to England from European Cup match – quarter-
final against Crvena Zvezda Belgrade. Match
ended up with a 3-3 draw (5-4 on aggregate and
United were on the way to semi-final). On the
return journey the aircraft stopped at Munich to
refuel. After the third attempt of takeoff
procedure plane crashed due to sudden loss of
speed. There were 6 crew members and 38
passengers on board: Manchester United
players, club’s representatives as well as
journalists and supporters. Mark Jones, David
Pegg, Roger Byrne, Geoff Bent, Eddie Colman,
Liam Whelan, and Tommy Taylor were killed
instantly. Club secretary Walter Crickmar as well
as coaches Tom Curry and Bert Whalley were
also killed. Duncan Edwards, Matt Busby, and
Johnny Berry were critically injured. Duncan
Edwards died three weeks later in hospital.
Johnny Berry and Jackie Blanchflower survived
but never played again. Four other passengers
and two of the crew were also killed, as were
eight sportswriters travelling with the team,
including former England goalkeeper Frank
Swift. On the day of the crash 23 great people
have lost their lives. It was the most tragic day
English football had ever seen. Of course the
whole season was lost because club members
were devastated by accident. However club
members did not give up and some of the
survivors had a huge impact on Manchester
United future. Especially the coach Matt Busby
and a player Bobby Charlton. The 6th of
February is still remembered and every year the
club, the fans, the players pay tribute to those
who lost their lives in the plane crash.
One of many memorials at
Old Trafford – Munich Clock
unveiled on 25 February
1960
Club’s history
26

27. Busby babes
Busby babes’ history is a story of both glory and tragedy, happiness and
sadness. The term “Busby babes” was first introduce by Manchester
Evening News journalists and referred to who won the league in
1955/1956 and 1956/1957.
The Busby Babes were notable not only for
being young and gifted, but for being
developed by the club itself, rather than bought
from other clubs. Most of Manchester United
players those years were homegrown players
and 21-22 years old on average. They made
progress, came trough every stage in clubs
hierarchy with help and guidance of one of the
biggest person in club’s history – Sir Matt Busby.
Sir Matt Busby managed United between 1945
and 1969 and was a main creator of
development and success of young players.
The team was really successful those days: won
League title twice and were runners-up in FA
Cup. Even players from the outside were not
necessary and over a couple of years United
carried out only few transfers.
The team was supposed to win many more titles
but then the Munich disaster had happened and
dream was over. 10 players lost their life or were
not able to continue career. Among them was
Duncan Edwards. While waking around
Manchester and Old Trafford is very common to
hear from older fans that even Pele and
Maradona could not match Edwards’ talent and
he was the very best player they have ever seen.
After the tragedy survivors, with Sir Matt Busby,
started to rebuild the club. New team was built
around Bobby Charlton, Harry Gregg and Bill
Foulkes. With help from new players, like
George Best or Denis Law, who came to the club
Manchester United won FA Cup in 1963 and
won the league in 1965 but the biggest success
was yet to come…
It was the evening, 29th May 1968, ten years after
Munich. In European Cup Manchester United
won the title after beating S.L. Benfica 4-1 with
Bobby Charlton scoring twice. This was the
biggest success of Sir Matt Busby and The
Babes.
Busby retired as manager at the end of the
following season, having announced his
intention to do so on 14 January 1969 but
remained at the club as a director.
The legend of “Busby Babes” is still alive at Old
Trafford.
George Best after scoring a
goal in European Cup final
against S.L. Benfica in 1968.
Club’s history
27

28. When Ron Atkinson was leaving club in 1986 his place as Manchester
United manager was taken by Alex Ferguson, then 43-year-old former
Aberdeen manager with few trophies won like Scottish Premier Division
or Scottish Cup. He was a promising manager but surely no one would
have expected that he will remain United’s manager position for more
than 26 years.
Sir Alex Ferguson was appointed as Manchester
United manager on 6th of November 1986 and
he was on duty until 19th of May 2013 when
Manchester United finished Premier League as
champions for the last time. His career has led
Sir Alex to being regarded as one of the most
successful, admired and respected managers in
the history of football and sports in general.
Since joining the club, he lifted over 30 trophies
as the boss at Old Trafford and that makes him
the most successful manager in British football
history. Broke many records and was the most
influential person at Old Trafford. He managed
Manchester United in 15001 games, winning 895
what gives 60% win ratio.
However his career at Old Trafford started at
rather low level. He waited for his first win until
his 3rd game having lost debut 2-0 to Oxford
United. First few season were weak and even
fans started to demand a new manager.
Fortunately the Board allowed Ferguson to do
his job. After a return of Mark Hughes and
signing of Eric Cantona, Manchester united have
won its first League title after 26-year wait.
Suddenly the future of Manchester United and
Sir Alex Ferguson began to look bright. After
this time, like everyone, Ferguson had ups and
downs but his time at Old Trafford is a time of
permanent success for the club. As first British
club, Manchester United won the treble in
1998/1999 season, winning Premier League,
Champions League and FA Cup. Sir Alex
Ferguson and his style of managing led
Manchester United to the position it has now.
Over 26 years he brought large group of
absolutely world class players, as well as
introducing homegrown footballers who later
became club’s legends but he always stated that
“no one is bigger than club”
1 Source: http://www.stretfordend.co.uk/managers/ferguson.html
2 Source: http://www.premierleague.com/en-gb/clubs/managers/profile.overview.html/alex-ferguson
26 years of glory
Premier League
Champions League
FA Cup
Manager of the Year
Highlights2
13x
2x
5x
5x
Club’s history
28

29. After Sir Alex Ferguson decided to retire everyone were wondering what
is going to be next for Manchester United, how life at Old Trafford is
going to look like after “Ferguson’s era”. David Moyes was appointed as
new manager but after disappointing results and performance club
decided that new one should step in.
Louis Van Gaal was confirmed to replace David
Moyes as the new manager for Manchester
United on 19 May 2014, after signing a 3-year
contract with the club. It took effect after FIFA
World Cup 2014 in Brazil were LVG managed to
reach semi-final with Netherlands national team
and then securing the third place in the
tournament after winning with Brazil 3-0. United
seemed to be in the trough when it comes to
both morale and quality of performance and Van
Gall was chosen as a manager who bring what is
necessary and put United back in the first four in
Premier League and secure place in Champions
League. The first season 2014/2015 was really
tough for the team but the club managed to
finish at 4th and is on a good way to play in
Champions League in upcoming season.
However, since Sir Alex Ferguson’s retirement a
lot have changed in the dressing room. Many
players have left the club. Homegrown players
like Darren Fletcher, Danny Welbeck and Tom
Cleverley, players wore United shirt for many
seasons like Nani, or Robin van Persie who was a
key factor in United’s last winning campaign in
2012/2013. Especially the defending line
seemed to be a ruin after departures of Rio
Ferdinand, Nemanja Vidic and Patrice Evra.
Since Sir Alex Ferguson’s retirement United have
strengthen by completing many new signing.
With players like Juan Mata, Marouane Fellaini,
Luke Shaw, Ander Herrera, Marcos Rojo, Daley
Blind and recent signings of Memphis Depay,
Morgan Schneiderlin, Bastian Schweinsteiger
and Matteo Darmian fans will see completely
new United team. Last season showed that not
everything works perfectly fine and expectations
are extremely high, as always, at Old Trafford. It
is impossible to forecast whether the club will
sign any new players but for now it seems that
club does everything it can encourage David de
Gea to stay in Manchester. Spanish goalkeeper
was a key player last season, who saved many
points for the club, but rumors say he is already
on his way to Real Madrid. Many critics also
point out that club also lost its “soul” by
completing huge transfers but everyone should
realize that nowadays results are expected here
and now and to produce new “Class of ‘92” it
takes many seasons.
With captain Wayne Rooney, many young
players and new signings Manchester United
should be able to keep up with Chelsea, Arsenal
and Manchester City in race for Premier League
title but surely this is no longer Ferguson’s
United but new Manchester United by Louis van
Gaal.
What lies ahead
Club’s history
29

30. Business Review
General Information
SWOT Analysis
Matchday
Broadcasting
Commercial activities
Employee Expense Management
Key Operational Assets
Other

31. OLD TRAFFORD
The stadium called also “Theatre of Dreams” is fully-
owned by the Company and was built in 1910, is
one of the Club’s trademarks. It is one of the
biggest asset in Company’s accounting books that
generates Matchday. With average attendance 99%
of total capacity it allows Club to collect even more
than £100m annually.
SUPPORTERS
Supporters are Manchester United key
asset. The Club is recognizable
everywhere around the world and
United shirt may be seen in every
country. Fan base leads Club to
become the highest valued brand on
football market (according to
brandfinance.com) Fans both in the UK
and overseas are motor engine for each
source of revenue.
TROPHIES
Manchester United trophy gallery contains numbers of many
awards. Club has won 9 different trophies including Domestic and
European and International Cups.
POWER OF THE BRAND
With an enormous fan base and brand recognition Manchester
United takes huge profit. Commercial revenue became the most
important source of revenue. After signing deals with AON,
General Motors and new record-breaking with Adidas the Club will
boost its revenue securing massive amount of money for the future.
General Information
MANCHESTER UNITED
One the world’s most
recognized and successful
football club was established in
1878. Estimated number of followers
amounts to 659m.
65.5m5.6m
As of 27.07.2015
20x
11x
3x
The Club won also: FIFA Club World
Cup, International Cup, FA Community
Shield, UEFA Super Cup and European
Cup Winners’ Cup
42x
Manchester United
has won over 42
trophies
BROADCASTING
Revenue from TV Rights are
rising over years and it is
very important source of the
revenue for the Club.
Starting from season
2016/2017 new deal will
take effect and Premier
League clubs will divide
between themselves even
up to £8bn over three
seasons. However the
Premier League negotiate
new contracts not
Manchester United itself
Business review
31

32. WEAKNESSES
THREADS
STRENGTHS
OPPORTUNITIES
o Entering emerging markets,
especially in Asia can result in a
major revenue boost in almost
every area of business with
major impact on Commercial
revenue.
o Summer tours secured around
£11m revenue for year ended
30th June 2014. This may be
the opportunity for the club in
future.
o Introducing Financial Fair Play
may put financially health clubs
in favor over indebted clubs
when comes to signing new
players. Many big clubs
(potential competitors when
trying to sign certain players)
may be fined by UEFA with a
transfer embargo what will help
Manchester United to sign top
class players.
o New record-breaking
sponsorship deals may
encourage market to invest
more funds in Manchester
United, potential partners may
see the a high potential growth
in the Club.
o Dependence on UEFA/The
FA/Premier League rules may
put the club in a worse position
when comes to a minimum
number of homegrown players
or players with English
passport. Due dissatisfaction
with national team results such
rules may come into effect in a
near future.
o Rising popularity of football
attracts overseas investors who
took over clubs. This has a
consequence in stronger
competition and higher number
of clubs that are able to achieve
trophies.
o There is no longer a term “Big
4” in Premier League in regard
to Liverpool, Arsenal, Man Utd
and Chelsea. Teams like Man
City or Tottenham are on the
same level, moreover every
season there is at least one
team that also has chances to
finish in top 4 – like
Southampton or Everton. And
there are only 4 places in
Champions League.
o It is possible that next
sponsorship agreements will
not be as profitable as current
ones.
o Club still carry a large portion of
debt and it is possible, when
negative circumstances occur,
that club will find it hard to
repay the liabilities.
o Manchester United well-being
depends on many factors that
club does not have an influence
on: Attracting key personnel or
business partners.
o The national/world economy
condition affects business very
much. In case of crisis
attendance could lower,
Broadcasting revenue may
decrease as well and
sponsorship agreements may
not be as profitable.
o In long-term state of business
depends on performance of the
first team. This is why it is crucial
to hire the best possible
players.
o Every year without Champions
League competition leaves
huge gap in revenue that
cannot be filled in other way.
o Huge fan base located around
the world – over 650m
supporters around the world
o Very high rate of brand
awareness – number of
followers and likes.
o Ability to monetize the brand’s
value – through number of
partnerships with most recent
with Adidas and GM.
o As one of the world’s greatest
football brands it is easier to
attract top class players.
o Old Trafford is the biggest
stadium in the UK and has the
utilization rate of 99% since
1998/1999.
o One of the most successful
football clubs around the world.
o Large amount of revenue
comes from stable sources and
does not depend on on-the-
pitch performance in short-
term. Revenue from Premier
League or sponsorship
agreements will remain on high
level even if the team fail to
success.
o Manchester United is one of the
strongest football clubs in the
world, from financial point of
view.
SWOT Analysis
32

33. Revenue - Matchday
Amazing stadium is Club’s great asset that is generating huge
revenue. However in the times of Broadcasting and Sponsorship
deals Matchday become the smallest source of revenue.
Source: Own analysis based Skysports data
Average season ticket prices in 2015/2016
Premier League
Because major share of Matchday revenue
comes from ticket sales it obvious that
overall amount of revenue are correlated
with attendance at Old Trafford. The Club
have no problems with utilizing stadium’s
capacity. Since 1997/1998 average
attendance amounts to 99% which is
extremely good result even in Premier
League where almost every club has an
attendance above 90%. Club could surely
sell more tickets for home games, however
Old Trafford is already the biggest stadium
in Premier League with capacity of 75 635
seats.
At the same time club has a limited options
to increase revenue in this category.
Attendance cannot become any higher
without bigger capacity of Old Trafford and
setting higher ticket prices may be very
risky. In Premier League has the most
expensive tickets among European
Leagues. Fans are showing their
dissatisfaction during games, they even
organize strikes, all because of rising
prices. Yet Manchester United is not the
club with highest prices in Premier League.
Season tickets for Arsenal’s games cost
more than two United’s tickets. On the
other hand the cheapest Manchester City
season ticket costs £299, £233 less than at
Old Trafford. Club may look up for
alternative source like organizing games
during Olympic Games 2012. It also seems
that executive suites or VIP lounges are
becoming more and more popular.
Still the most important factor in number of
games played. The Club is is playing 19
home games every season in Premier
League and in addition should maximize
number of Champions League and
Domestic Cups (however distributing
model in Domestic Cups may be inefficient
for bigger clubs). Matchday revenue will be
lower that in previous season because
Manchester United did not compete in
Champions League but the average
revenue per game remain on the same
level – £4.5m and is at least 12.5% higher
then in previous seasons. Especially
Champions League games will boost this
revenue category that is why it is essential
for United to qualify every year to this
competition.
*Football League Cup excluded
21
3,9
4,1
4,0
4,5 4,5
3,4
3,6
3,8
4
4,2
4,4
4,6
85
90
95
100
105
110
115
2010/2011 2011/2012 2012/2013 2013/2014 2014/2015
£MIL
£MIL
Matchday revenue Average revenue per Game
Source: Own analysis
Average Matchday revenue*
29 24 27 24
XX Number of home games
Min – Adults’ cheapest season ticket
Max – Adults’ most expensive season ticket
532
1035
299
710
500 419 445
950
2039
1750
869
924
489
650
Manchester
United
Arsenal Manchester
City
Liverpool Newcastle Swansea
City
Watford
Business review
33

34. Broadcasting
Manchester United are about to gain an increase in Broadcasting
revenue due to new deal negotiated by Premier League. Clubs’
games are also televised in Champions League, Domestic Cups and
Summer Tours and these are additional source of revenue.
Source: Own analysis based on Premier League and UEFA data
Broadcasting driving factors
PREMIER LEAGUE
This is the main source of broadcasting
revenue. Due to rising attractiveness of
football and Premier League as a league,
every new contract is record breaking.
Contracts are usually for a 3-year period of
time. It should be noted that not only place
at season’s finish have an impact on
amount of revenue. Starting from season
2016/2017 new deal will take effect and
clubs may earn up to £8.1bn (£5.1bn new
deal with domestic TV operators plus
unconfirmed overseas deal). On the day of
the announcement Manchester United
shares on NYSE had risen by 5%. That
shows how important the change is.
Starting from new deal Manchester United
can earn even up to £150m. Premier
League distribution system provides clubs
with probably most equal rights. It is
possible that if Manchester United had a
chance to negotiate contract only for itself
it could get even higher stakes but on the
other hand current distribution model
allows steady growth for whole league and
high level of every single team in the
league makes Premier League one of the
best, if not the best one, football leagues in
the world and that allows Manchester
United to take profit because of this.
CHAMPIONS LEAGUE
Lack of appearances in season 2014/2015
showed how important it is, from financial
point of view, to secure a place in UEFA
competition. Starting from season
2015/2016 money to distribute between
clubs will also rise significantly. Revenue
are paid in EUR currency and that makes a
risk for the club. Every season without
Champions League means
DOMESTIC CUPS
Domestic Cups’ matches may be televised
but the amount of contracts are not high,
additionally when Manchester United will
draw a club from lower division game may
be considered as not attractive and will not
be televised. This segment is not as
important as Premier League and
Champions League.
OTHER MATCHES
Individual contracts with partners are not
available for public, but in comparison with
with other Broadcasting segments, this one
is not as important and may considered as
a bonus.
Source: Own analysis based on Premier League & UEFA data
Broadcasting revenue breakdown
53
36 36
45
-
60 60 61
89
97
2010/2011 2011/2012 2012/2013 2013/2014 2014/2015
Champions League (EURm) Premier League (GBPm)
£1,733bn
£3,018bn
£5,136 bn
2010-2013 2013-2016 2016-2019
Premier League TV deals
Champions League distribution system
2012-2015 2015-2018
Group Stage 8.6 12
Group Win 1 1.5
Group Draw 0.5 0.5
Round of 16 3.5 5.5
Quarter Final 3.9 6
Semi Final 4.9 7
Runner-up 6.5 10.5
Winner 10.5 15
Additionally clubs are given revenue from market pool,
which separate for each national league. It is believed that
for Premier League clubs the share may rise up to50%.
Business review
34

35. £303m
over 13 years
min. value
£750m
over 10 years
£23.4m
per season
+ bonuses
£75m
per season
+ £4m bonus
-30% lack of CL in 2
consecutive seasons
Commercial activities
Recently Commercial revenue became the most important source of
revenue for the Club. With new record-breaking deals Manchester
United are on the verge of boosting revenue to even higher level.
Club's commercial revenue may be
showed as three categories: Sponsorship,
Retail & merchandising and Mobile &
content.
Starting from season 2014/2015 General
Motors with Chevrolet brand became
Club’s biggest Partner. The Club will earn
GBP equivalent of $70m. Moreover this
amount will increase every year by 2.1%.
GM also paid £18.6m as pre-partnership
support. Club was also the first in football’s
history to have a Training kit partner.
Previously right to this partnership had DHL
and now this place on shirt belongs to
AON. Moreover, AON has naming rights to
training complex at Carrington. It is
rumored that AON Training Complex is
worth approx. £15m per season.
Club also has many other partners present
on both domestic and international
markets.
In terms of Retail major share comes from
partnership with Nike which is expiring
prior 2015/2016 season. New partnership
with Adidas will provide Club with money
injection. New contract allow Company to
use £75m per season. Additionally a bonus
of £4m if the team’s performance is
satisfying. However, if Manchester United
fails to qualify to Champions League for
two or more consecutive seasons, the
annual payment will be reduce by 30%
(Club will earn £52.5m). So far it never
happened but the competition in Premier
League represent higher level every
season and there is a risk of finishing on 5th
or lower position in two consecutive
seasons.
Even though Mobile & content is a small
group in comparison with Retail and
Sponsorship this may be a significant
segment in the future. The growth potential
is huge in days of new technologies, video-
on-demand and and other internet-related
services. Club will invest significant amount
of money in this segment – up to £8m but
due to dynamic growth of the category this
sum is subject to change for higher values.
Club’s Executives secured Club for years,
most of deals are long-term (all of major
deals expire after 2020). On the other hand
Club should be prepared that after 2020 it
may not be possible to sign such contracts
any more.
Business review
8,0
14,1
19,6
43,6
vodafone AIG AON General Motors
Source: Company’s financial reports
Manchester United sponsorship deals
Source: Company’s financial reports
New partnerships vs previous
£70m £134m
Source: Own elaboration based on financial reports
Nike partnership vs Adidas partnership
Estimated values for retail, main sponsorship deal and mobile segments
35

36. 46,14%
50,48%
49,70% 49,59%
51,23%
43%
44%
45%
46%
47%
48%
49%
50%
51%
52%
2010/2011 2011/2012 2012/2013 2013/2014 3Q
2014/2015
Employee Expense Management
Employee Expenses are a crucial area of cost management in every
football club. Manchester United, despite hiring best players
presents reasonable and safe level of Employee costs/Revenue ratio.
Source: Own analysis based on The Guardian data
Employee expenses/Revenue ratio for selected
Premier League clubs
Employee/revenue ratio shows that value
have risen in season 2014/2015, but
change is not significant and still the result
51.2% is very reasonable. According to
UEFA research every club should keep this
ratio below 60% and if club depicts value of
70%+ it is considered as not liable. After
retirement of Sir Alex Ferguson the team is
under reconstruction process. Many new
players came into dressing room, some of
them are recognized as stars. Departures
of Radamel Falcao, Robin van Persie and
Nani shows that Club is taking care of its
payroll and is trying to keep ratio on
reasonable level. It should be noted that
Manchester United is a club with biggest
employee expenses, however it also
generates highest revenue stream in
Premier League. It is expected that
employee expenses will rise after recent
and possible new signings, yet the ratio will
remain below 60%.
Source: Own analysis based on financial reports
Employee expenses as percentage of revenue
50%
55% 55%
56%
59%
Manchester
United
Arsenal Tottenham Liverpool Chelsea
Source: Own research
Highest Paid Players
Wayne
Rooney
Angel
Di Maria
Bastian
Schweinsteiger
Juan
Mata
Morgan
Schneiderlin
Man Utd
Arsenal
Chelsea
Liverpool
Newcastle Utd
Aston Villa
Tottenham
Everton
Middlesbrough
Leeds Utd
West Ham
Blackburn
Charlton
Bolton
Fulham
R² = 0,84876
0
0,5
1
1,5
2
2,5
3
3,5
4
0 2 4 6 8 10 12 14 16 18
Source: S. Szymanski, S. Kuper, Soccernomics, HarperSport 2012, p. 12
Performance and wage expenditure (1998-2007)
Newcomers the best-earners in the Club.
Four out of five players with highest wage
were bought over last two seasons. With this
information and market trends, Manchester
United will probably spend more on wages
in the future. It cannot be forecasted
precisely but this is a significant risk factor for
the business.
Comparing to other key competitors in
Premier League Manchester United present
the best ratio’s value. Still other clubs shows
values below 60% what gives them the
opportunity to chase players they want to
buy.
Research carried out by S. Szymanski and S.
Kuper shows that Manchester United pay
wages of more the 3x higher than league
average. It is also a proof that in long-term
perspective wage level is correlated with
league position
3.16x
Manchester United
wages above League
average
Business review
36

37. 75,11
75,39
75,53
75,21
75,34
2010/2011 2011/2012 2012/2013 2013/2014 2014/2015
99,3% 99,7% 99,9% 99,4% 99,6%
Utlization
Theatreof Dreams
Old Trafford, know also as the “Theatre of Dreams” is one the iconic
stadium around the world. Ground generates Matchday revenue of
approx. £100m.
Source: Own analysis based on Worldfootball.net
Clubs with the highest attendance in Premier
League 2014/2015 (‘000)
Old Trafford is one of the most famous and
historic stadiums in the world. Football
followers travel from all over the world to
attend a match at Old Trafford.
The stadium is located no more than 5km
from the City Centre with good access to
A56 that leads to M60.
Prior to the season 2006/2007 Club
expanded seating capacity at Old Trafford
from approx. 68 000 to 75 635. This is also
the biggest stadium in the UK. Because of
this Manchester United has the highest
attendance among other Premier League
competitors.
While visiting Old Trafford fans are able to
shop ate Club’s megastore, learn about
Manchester United history at Museum and
eat dinner at restaurants/bars.
The venue generates high depreciation
costs and require renovations over years.
Old Trafford book value amounts £231m
(combined with AON Training Complex) as
for 31.03.2015 and depreciation costs are
around £3.4m per year. Moreover required
capital expenditures amounted to approx.
£4.1m, £4.0m and £15.3m for the years
2014, 2013 and 2012 respectively. Club
estimates that min annual capital
expenditures are to be more or less £3m.
Even though the attendance amounts
almost full capacity there are probably no
plans for expanding, yet that would
generate high costs, but still Old Trafford
may be Club’s most important assets, it is
part of Club’s heritage.
Source: Own analysis based on Worldfootball.net
Average attendance at Old Trafford (‘000)
75 335
59 992
50 359
45 365
44 659
Manchester United
Arsenal
Newcastle
Manchester City
Liverpool
Source: Own research
Old Trafford Highlights
Old Trafford
Year of construction 1910
Seats 76 635
Luxury Boxes 154
Executive club seats 8 000
Restaurants 15
Sports bars 4
Business review
37

38. Brand
Every club’s major asset is brand, with its heritage, history, successes
and players who wore club’s kit. Manchester United is working hard
to increase increase its brand value and every year it is the one of the
highest valued football brands around the world.
According to BrandFinance, brand
valuation company, Manchester United is
the highest valued brand among football
clubs. £727m is £165m more than second
Bayern Munich. The results were published
in “Football 50” 2015 edition.
The valuation was conducted with the use
of “relief from royalty” method. Method
itself is similar to ordinary DCF valuation
used for enterprise valuation. It applies
royalty rate, the the rate that club would
have to pay to have the rights to use third
party trademark for own purposes. To find
this royalty it is necessary to find previous
transactions within selected industry and
see in buyer’s financial report the value of
brand/intangible asset/trademark. Various
websites may also be used for these
purposes (ktMine or RoyaltySource). For a
example ktMine estimates a royalty rate in
Entertainment industry, which contains
Sports events, at 15%. Other possible
option is to carry out own analysis by using
factors that are important in selected
industry and according to results apply a
rate which should not be higher that 25%
of EBITDA margin.
Because of similarity to DCF method,
brand valuation’s main factor is revenue.
This is why Manchester United brand
valuation is higher then in previous year.
Club have secured higher revenue for next
years through new Premier League TV
deal, and partnership with Adidas and
General Motors.
In the list of 10 highest valued football’s
brand there are six Premier League club’s
what shows the strength of the League
Source: Football 50 2015 Edition, BrandFinance
Highest valued football brands (£m)
727
562
526
482
479
465
423
347
326
217
Business review
38

39. Players
After Sir Alex Ferguson retirement the team is under reconstruction
process led by Luis van Gaal. Many players left the Club and many
came into squad. However it seems that Club is still searching for
new players while experts criticize Company’s transfer policy.
Only few players from season 2012/2013
still remains in the Club. From players who
had huge impact on winning campaign in
2012/2013 only Wayne Rooney, David de
Gea, Michael Carrick, Antonio Valencia and
Ashley Young are still at the Club. Despite
big signings critics stress that Manchester
United want to “buy” Premier League title
and that Club is “loosing its soul and
heritage” by this transfer policy. Experts
also point out that defensive area need
major signings after departure of Evra,
Vidic and Ferdinand. Also new players
struggle to put their footprint on team’s
performance and style. Angel di Maria,
Radamel Falcao, Luke Shaw and Juan Mata
were criticized and said to be
underperforming. Fallaini had been called
as overpriced signing. Not all the transfers
were good decision but after departure of
important players Club needed players
who can just come into squad and play on
certain level.
New transfers provide manager with both
experienced players and young players
and to some extent gives him a freedom of
rotating first eleven. On the other hand it
seems like defensive line still needs to be
strengthen. Also team is left with only
Rooney, Hernandez and Wilson up front
and Chicarito is said to be put on transfer
list and might leave the Club before
September.
Van Gaal has various option in midfield
with Carrick (probably most important
player last season), Mata, Young, Fellaini,
Depay, Schweinsteiger, Herrera and
Schneiderlin.
Critics stress that there is also no more
room for homegrown players and that they
will struggle to play in first team, and that
surely is a difference in comparison with
Club’s policy from previous years. It looks
like only McNair, Wilson, Lingard, Blackett
and Januzaj have real possibility to take
more serious part in the team.
More players may come during Transfer
window and players like de Gea might be
leaving the club soon as well. Undoubtedly
Manchester United squad justify club’s
desires to win Premier League this season
but what about future? Will the squad be
homogeneous and players willing to fight
for each other?
Source: Own research
Manchester United 2012/2013 vs 2015/2016
Source: Manutd.com, as of 30.06.2015
Transfers prior 2015/2016 season
Business review
Vidic
Ferdinand
Rafael
van Persie
Evra
Kagawa
Rooney
Carrick
Valencia
de Gea
Young
Bench: Lindegaard, Jones, Giggs, Scholes, Cleverley, Hernandez, Welbeck
Rojo
Smalling
Valencia
Shaw
Schneiderlin
Carrick
Schweinsteiger
Mata
Depay
de Gea Rooney
Bench: Romero, Jones, Darmian, Herrera, Fellaini, Young, Hernandez
Memphis Depay, Matteo Darmian, Bastian Schweinsteiger,
Morgan Schneiderlin, Sergio Romero
Nani, Robin van Persie, Angel di Maria, Rafael, Radamel Falcao
(loan end)
39

40. Other
There are also other important areas that Club is involved in. Club
operates MU Foundation, visits other continent as part of Summer
Tours. Manchester United is also listed on New York Stock Exchange.
CORPORATE SOCIAL RESPONSIBILTY
Manchester United is extremely popular
Club everywhere around the world. Thanks
to power of the brand Company can also
operates CSR strategies. Trough players
and Club’s staff Manchester United runs
MU Foundation that organize variety of
events and charity projects. Moreover Club
has an agreement with UNICEF. Through
MU Disabled Supporters Association
Company helps fans to fight with
weaknesses.
SUMMER TOURS
Summer tours between seasons are
becoming more and more popular among
football clubs. Manchester United has
played 24 exhibition games over last four
seasons, visiting Australia, China, Germany,
Hong Kong, Japan, South Africa and other
countries. Last two pre-season’s
preparations took place in the United
States where Manchester United is
extremely popular. In 2014 at Michigan
Stadium over 109 000 fans enjoyed
Manchester United – Real Madrid game.
Summer tours in an additional source of
revenue for the Club. During 2014 Tour the
Club earned £11m and this does not
include any sponsorship-related revenue. It
is believed that Summer Tours can become
even more profitable.
Moreover Club offers non-football related
services like organizing conferences or
even weddings.
Business review
Source: nyse.com
Manchester United share price (USD)
17,81
16,20
0
5
10
15
20
Manchester United is listed on New York Stock
Exchange since 10th of August 2012. Current price
(as of 29.07.2015) is $17.81 what means that it is
above average price of $16.20. The highest share
price was $19.48 a year ago (30.07.2014). Current
market cap is $2.92bn.
40

41. Financial Analysis
Summary
Revenue Analysis
Costs of Activity
Company’s Assets
Liabilities & Equity
Borrowings and Finance Costs
Operating Results
Financial Ratios

42. Summary
Manchester United presents healthy financial condition in every
aspect of its activity. Positive results may be seen in both Income
statement and Balance Sheet. However lack of Champions League
appearance is easily seen in financial results of the Club and shows
how important it is to secure place in competition.
Source: Own analysis based on financial reports
Revenue and Expenses Growth
REVENUE
Revenue are growing almost every season,
with CAGR of 9.3% however recent season
will be negative in terms of Revenue.
Estimated growth amounts to -11%. On the
other hand Operating Expenses remain on
similar level.
Over last seasons it may be seen that
Matchday revenue source becomes less
important, while Commercial activities
became main source of revenue for the
Club.
Due to new TV Rights contract and new
partnership Manchester United will
significantly boost revenue in next seasons.
OPERATING EXPENSES
Expenses show growth in every season.
Data for 3Q 2014/2015 show that expenses
have almost reached the level of revenue.
Employee-related expenses remain the
biggest segment in Total costs.
Surprisingly, Club managed to lower wage
and salaries despite completing transfers
of many players.
Significant increase has been noted on
Amortization of players’ registration, also
due to new players coming to the Club.
DEBT & EQUITY
Manchester United number one priority is
Debt management. Senior secured notes
and Secured term loan facility and others
amounts to almost £400m (approx. 33% of
Total assets’ value). Borrowings are to be
repaid until 2019.
Equity’s share is higher than in previous
seasons.
ASSETS
85% of Total assets’ value is a share of Non-
current assets. Club’s main assets are
stadium Old Trafford, Goodwill, Players’
registration and Aon Training Complex.
Club’s assets have grown by 18% since
2010/2011 season.
PROFITS
Manchester United may be proud of being
a football club that has been profitable on
both operating and net income level for 5
consecutive seasons.
Source: Own analysis based on financial reports
Selected Financial Ratios
Source: Own analysis based on financial reports
Operating profit and profit for the year
-3%
13%
19%
-11%
5%
9%
20%
2%
2010/2011 2011/2012 2012/2013 2013/2014 2014/2015
Revenue' growth Operating Expenses' growth
4.8%
Return
on Equity
0.63
Current
Ratio
59%
Debt
Ratio
63
45
62 68
23
13
23
146
24
6
2010/2011 2011/2012 2012/2013 2013/2014 3Q
2014/2015
Operating profit Profit for the year
Estimated growth for 2014/2015
Financial Analysis
42

43. Revenue Analysis
Starting from season 2010/2011 club’s revenue increased by 31%
reaching £433m in season 2013/2014. Figures for 3Q 2014/2015
shows possible decrease (estimated £386m) by £47.3m mostly due
to lack of Champions League revenue.
103 118 152 189 151
117 104
102
136
67
111 99
109
108
71
2010/2011 2011/2012 2012/2013 2013/2014 3Q 2014/2015
Commercial Broadcasting Matchday
Source: Own analysis based on financial reports
Revenue breakdown (£m)
HIGHLIGHTS
The club generates revenue in 3
categories: Matchday, Broadcasting and
Commercial activities. While two first
segments are stable or growth is
determined by outside factor, the main
reason of 9.3% CAGR (Compounded
Annual Growth Rate) is mostly thanks to
Commercial segment that rose by 83%
over 4 seasons.
MATCHDAY
Matchday revenue varies from £99m in
2011/2012 season to £111m in 2010/2011.
Main reason of differences is number of
games played by the throughout the
season. However this segment becomes
less important to club due to limited
capacity at Old Trafford (99% of tickets are
sold on average) and fans opposition
against tickets’ price increases. Matchday
revenue stands for around 25% of revenue
in seasons 2013/2014 and 3Q 2014/2015
while before it was a minimum of 30% (33%
in season 2010/2011.
BROADCASTING
Manchester United will generate huge
amount of revenue thanks to TV rights
distribution sold to both domestic and
overseas TV providers. 34% growth in this
segment took place in season 2013/2014
because of new 3-year contract. Starting
from season 2016/2017 massive new deal
will take effect and that means another
boost of revenue. Typically Broadcasting
revenue stands for approx. 30% of revenue
but it is expected to have bigger impact in
the future because of new deal contract.
COMMERCIAL
Commercial activities carried out by the
club becomes the major source of revenue
over last 4 seasons. While in 2010/2011
season this was third biggest source
(£103m), now in season 2013/2014 it
amounts to £189m and is expected to
reach £200m for the season 2014/2015
(figures for 3Q shows £151m).
331 320
363
433
289
0% -3%
13%
19%
-33%
-40%
-30%
-20%
-10%
0%
10%
20%
30%
-
100
200
300
400
500
£MIL
Revenue growth [%]
Source: Own analysis based on financial reports
Revenue analysis
31%
37%
42% 44%
52%
0%
10%
20%
30%
40%
50%
60%
2010/2011 2011/2012 2012/2013 2013/2014 3Q 2014/2015
Commercial Broadcasting Matchday
Source: Own analysis based on financial reports
Revenue structure
Financial Analysis
43

44. Revenue Analysis
Manchester United thanks to its brand’s recognition and fan base
around the world benefits and it reflects commercial revenue. Thanks
to partnership with many a range of companies commercial activities
became the most important source of revenue.
2010/2011 2011/2012 2012/2013 2013/2014 3Q 2014/2015
Commercial revenue 103 369 117 611 152 441 189 315 151 029
Sponsorship 54 925 63 121 90 865 135 835 119 629
Retail, merchandising, apparel & products licensing 31 268 33 787 38 609 37 512 23 300
Mobile & Content 17 176 20 703 22 967 15 968 8 100
Source: Company’s financial reports
Revenue structure [£ ‘000]
Revenue generated by commercial
activities amounted to £189m in 2013/2014
season and estimated 2014/2015 figures
amount to £201m which stands for 6%
growth year-over-year.
The club divides its commercial revenue
into 3 categories: Sponsorship, Retail &
others and Mobile & content. The third
biggest category is Mobile & content. It
contains revenue from partnerships with
telecom operators in many countries as
well revenue generated directly by website
followers. Revenue in this segment is the
least important one for the company (8% in
2013/2014 season) however it stood for
approx. 1/5 in 2011/2012 season (£20m).
Retail revenue contains streams from
partnership with Nike. It should be noted
that Manchester United have a guaranteed
share from Nike and share that is result-
related. Because of lack Champions
League appearances in 2014/2015 season
revenue in this category will significantly
decrease.
The most important segment of
commercial activities is Sponsorship. It
stands for 79% of commercial revenue
(72%, 60%, 54% in 2014, 2013 and 2012
respectively). Manchester United has wide
range of both global and regional partners
around the world thanks to power of brand
and successful history.
Likewise Broadcasting, Commercial
revenue will increase significantly in future
thanks to new partnerships with Adidas
and General Motors.
Sponsorship
Retail, merchandising,
apparel & products
licensing
Mobile & Content
Source: Own analysis based on financial reports
Commercial revenue structure in 2014/2015 season*
* figures for 3Q 2014/2015
79%
of commercial
revenue
generated by
sponsorship
deals
136
38
16
136
108
189
Sponsorship
Retail, merchandising,
apparel & products
licensing
Mobile & Content
Broadcasting
Matchday
Source: Own analysis based on financial reports
Commercial revenue vs total revenue – 2013/2014 (£m)
Financial Analysis
44

45. Costs of Activity
Operating expenses are growing by 8.6% year-over-year with
£372m for 2013/2014 season and £285m for 3Q 2014/2015
season. The most significant category of costs are employee-related
expenses.
HIGHLIGHTS
Overall expenses have risen by 37% over 4
full seasons (2011-2014). Y-o-y growth was
higher every season however estimated
growth for 2014/2015 season shows
growth only by 2%. This is a significant
change in comparison to 20% in previous
season. Employee expenses for the
2013/2014 season amounted to £215m
and this was the largest expense category
for the club.
PLAYERS’ REGISTRATIONS
Players’ registrations are company’s assets
what means it amortized every year. The
value of amortization is related to number
of players employed, contract duration and
transfer fee for players who were brought
to the club. Due to big transfers conducted
in last two seasons amortization has
increased significantly, becoming the
second biggest segment for 3Q 2014/2015
season.
OTHER OPERATING EXPENSES
This is usually the second biggest group of
expenses with values ranging from £64m
to even £81m. This category contains
mainly security costs relate to match
organization, gate share costs for domestic
cups and summer tours costs.
OTHER COSTS
The club also incurs costs in categories like:
Exceptional items (loss of office, PL pension
scheme, advisers), Depreciation of
property and investment property, Lease
costs and Auditor’s remuneration. These
costs varies from £9m to £20m every
season.
273 285 310
372
285
95
5%
9%
20%
2%
0%
5%
10%
15%
20%
25%
-
50
100
150
200
250
300
350
400
2010/2011 2011/2012 2012/2013 2013/2014 3Q
2014/2015
£MIL
Operating expenses Forecast for 4Q 2014/2015 growth
Source: Own analysis based on financial reports
Operating expenses
153 162 181
215
148
7 7
8
9
7
68 64
71
81
53
39 38
42
55
74
5 11
6
5
2
2010/2011 2011/2012 2012/2013 2013/2014 3Q
2014/2015
Other costs Exceptional items
Amortization of players' registrations Other operating expenses
Depreciation—property, plant and equipment Employee benefit expense
Source: Own analysis based on financial reports
Operating expenses structure
39 38 42 55 74
2010/2011 2011/2012 2012/2013 2013/2014 3Q 2014/2015
Source: Own analysis based on financial reports
Amortization of players’ registrations (£m)
Financial Analysis
45

46. 136 143 158
189
1
2
16 18
19
21
1
1
2
2
2010/2011 2011/2012 2012/2013 2013/2014
Wages and salaries Share-based payments
Social security costs Other pension costs
56%
Employee benefit expenses analysis
Source: Own analysis based on financial reports
153
162
181
215
148
-
50
100
150
200
250
2010/2011 2011/2012 2012/2013 2013/2014 3Q 2014/2015
£MIL
Based on seasons
2011-3Q 2015 Employee-related
expenses stand for 56% of total expenses
Costs of Activity
As in every football club employee expenses are the biggest
category of costs. Manchester United spent £214m on salaries and
other staff-related expenses in 2013/2014 season.
Analysis of 5 periods (2011-3Q 2015)
shows that Employee expenses amount to
56% of total costs which should be seen as
reasonable level, especially in comparison
with other club around the Premier League
and other European leagues. Salaries and
other costs are rising by 12% every season
and cumulative growth of 40% (until season
2013/2014). It should not be a surprise as
club is hiring many players with a “star”
status.
However, what may be a huge surprise,
level of employee’s costs are going to be
lower in 2014/2015 season in comparison
to 2013/2014 (estimated value – £197m)
Club has hired Angel di Maria and
Radamel Falcao among others and even
though club managed to control its
expenses in even more effective way. This
year transfers will increase salaries level,
but on the other hand after the departure
of players with significant wages like Nani
or Robin van Persie employee-related
expenses should remain on similar level.
Wages and salaries level are key factors to
healthy financial condition of the club.
Players’ salaries are rising every year and
because of the importance of this costs
segment this is also extremely significant
risk factor that may lead to financial crisis
not only at Manchester United but any
other club.
Majority of employee expenses are wages
and salaries. That position also includes
bonuses. Wages salaries rose by 40% over
4 seasons. Other significant position is
Social security costs. Those figure
correlated with wages and stand for
approx. 12% of Wages and salaries. Other
positions does not present significant
values.
Source: Own analysis based on financial reports
Employee benefit expenses structure (£m)
Financial Analysis
46

47. 1 017
947
1 118
1 216 1 195
-7%
18%
9%
-2%
-10%
-5%
0%
5%
10%
15%
20%
-
200
400
600
800
1 000
1 200
1 400
2010/20112011/20122012/20132013/2014 3Q
2014/2015
Total assets growth
Club’s assets
Fixed assets are club’s main assets group while Current assets
remains only about 15% of total value (from 10% to 20%). The
biggest position in club’s accounting books is Goodwill, which
amounts to £421m.
Source: Company’s financial reports
Assets’ structure (£ ‘000)
HIGHLIGHTS
Total assets value have risen by
18% to reach £1195m as for
31.03.2015. The biggest impact
on change in assets between
2012 and 2013 had Deferred
tax asset that started to be a
significant position in club’s
books.
NON-CURRENT ASSETS
This group is dominant and that
is mainly because of Property,
plant and equipment (Old
Trafford stadium is one one of
the most important asset for the
club). Value of this position
does not change over
significantly over seasons
because of capital
expenditures. Similar value is
presented by Players’
registrations. It worth to notice
that Players’ registration value
has boosted by 213% since
2011/2012 what shows the
scale of investment in first
squad.
However the biggest share in
Non-current assets, and in total
value as well, posses Goodwill -
£421m. Goodwill contains all
subsidiaries’ value, mainly
Manchester United Limited
which was bought in 2005.
Goodwill is not a subject of
amortization but is annually
tested for impairment and if
conditions require it even more
often.
CURRENT ASSETS
As mentioned above Current
assets amounts to only about
15% of total assets. The biggest
share position is receivables,
mainly trade but also others.
Cash and equivalents shows a
decrease over years, from
£150m to just £11m as for
31.03.2015.
Source: Own analysis based on financial reports
Assets (£m)
2010/2011 2011/2012 2012/2013 2013/2014 3Q 2014/2015
Non-current assets 811 140 798 915 954 999 1 024 227 1 074 901
Property, plant and equipment 240 540 247 866 252 808 254 859 252 494
Investment property 6 938 14 197 14 080 13 671 13 587
Goodwill 421 453 421 453 421 453 421 453 421 453
Players' registrations 129 709 112 399 119 947 204 572 237 760
Derivative financial instruments - - - - 1 323
Trade and other receivables 10 000 3 000 1 583 41 1 000
Deferred tax asset 2 500 - 145 128 129 631 147 284
Current assets 206 048 148 233 163 312 191 484 120 398
Derivative financial instruments - 967 260 - 1 354
Trade and other receivables 55 403 74 163 68 619 125 119 107 716
Current tax receivable - 2 500 - - 124
Cash and cashequivalents 150 645 70 603 94 433 66 365 11 204
Total assets 1 017 188 947 148 1 118 311 1 215 711 1 195 299
Source: Own analysis
Assets (£m)
85%
Average share
of current assets
in total value
Financial Analysis
47