Manchester United investor relations material
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The Theatre of Dreams
Manchester United is a professional football club based in Manchester, England, that competes in the English Premier League. The club was founded in 1878 and has a rich history, having won numerous domestic and international titles throughout the years. Given the extraordinarily successful history, Manchester United's home stadium, Old Trafford, is now called The Theatre of Dreams.
The primary business model of Manchester United is generating revenue through matchday tickets, broadcasting rights, commercial partnerships, and merchandise sales. The club has a global fan base, which it leverages to secure lucrative commercial partnerships with companies such as Adidas, Chevrolet (General Motors), TeamViewer, and Kohler. The club has one of the largest fan bases in the world, with millions of supporters in countries such as China, India, and the United States.
An odd and tough industry
Creating profits within the football industry can be challenging, as the costs associated with player wages, transfer fees, and stadium operations can be significant. Additionally, football clubs are subject to fluctuations in revenue based on their on-field success, with winning trophies often leading to increased revenue through merchandise sales and sponsorship deals.
In recent years, Manchester United has experienced mixed financial results. The club reported record revenues of £627.1 million in the 2018/19 season, primarily due to increased broadcasting and commercial revenue. However, the COVID-19 pandemic had a significant impact on the club's financial performance, with revenue dropping to £509 million in the 2019/20 season due to the absence of matchday revenue. Despite this, Manchester United remains one of the wealthiest football clubs in the world, with a valuation of over $4 billion.