Manchester United is one of the best teams in English soccer. However, the team has not performed as well as it usually does. Have the losses on the field started contributing to a loss of revenue? Are they bound to start searching for Lottoland promo code online soon?
Interestingly enough, it was the club that gave the prediction of a drop in revenue. When asked about the season, Ed Woodward told the analysts that the season didn’t go as he planned in May. However, during that time, he praised other sources of income that seemed to keep the team afloat.
The executive vice-chairman posted the revenues from the 2018-2019 season. What’s fascinating is that despite the team winning only half of their matches, ending in 6th place and being criticized for having a terrible season, the profits are up. Up until July, the team made the record-breaking £627m.
That being said, Woodward predicts that the revenue is about to drop to £560 for the next season. The reason for this is that the club is now primarily focused on winning trophies and the Red Devils are going to have to come to terms with being in the Europa League.
So, how does a team like Man United make money? There are several ways to generate income that don’t include players winning matches. Sponsorship deals help brands promote themselves. Whether it is on their kits, their stadium, or even commercials – there are companies whose logos you cannot escape while you are watching the team play and they pay a handsome sum to Man United for it. These companies include Vodafone, Nike, General Motors, Toshiba, and others.
Another way to make money comes from broadcasting rights. In other words, if the team is good enough like United is, they can choose who gets to see their matches and sell the broadcasting rights to companies of their choice. Here is where it gets tricky, though. If the team doesn’t perform well in the season, like United last year, their revenue from broadcasting drops. Luckily for them, however, they have secured a few broadcasting deals that will prevent them from dropping too low. Why is there a fall in broadcasting revenue? As the previous season ended, United is facing a bit of a problem as they have failed to qualify for the Champions League.
Fans are not, for the lack of a better term, fans of the owners of the team, the Glazers, which have taken over in 2005. Furthermore, they are also not keen on Woodward. Some animosity here stems from loyalty to the previous ‘regime’ at the club, while the biggest portion of it is focused on the decline in performance, missing funds, and firing David Moyes and Jose Mourinho.
Despite Ed Woodward’s assurances and press conferences, many fans and critics are still convinced that the management’s primary focus is generating revenue and not having and maintaining a good soccer team.
What’s the Truth?
It is easy to see both sides of the story. The club is not performing as well as it should be and it is allowing some of the other teams to overtake it, including Manchester City. They failed to qualify for the Champions League and will have to make do with Europa League. The decline in performance is definitely there.
On the other hand, the revenues are up. A combination of matchday revenue, sponsorship, and broadcasting not only keeps the team afloat, but it also allows it to keep investing in itself. Before we judge them too harshly, perhaps we should wait and see how the 2019-2020 season plays out.