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November 14, 2013 8:12 pm
Manchester United hailed BT’s £900m deal for exclusive Champions League rights, saying it would be worth at least £10m a season for each of England’s top clubs.
Announcing a 29.1 per cent increase in first-quarter revenues, executive vice-chairman Ed Woodward said the more than doubling in the value of the Champions League rights demonstrated the pulling power of top-flight football.
“The value of content is rising. Sport is the must-have content and football is the world’s number one sport,” Mr Woodward said.
Twelve new sponsorship deals, including with Aeroflot, Pepsi and Emirates Bank and a 41 per cent uplift in broadcast rights on the back of the new Premier League deal, pushed first-quarter revenues to £98.5m.
But staff costs grew 31.3 per cent to £52.9m, as United paid out wages on new signings, upped the contracts of other players and gave out bonuses to its commercial team.
“If you look at the top 10 teams in Europe or the top players, we are seeing inflation at that top end,” said Mr Woodward.
Net finance costs fell £2.6m to £9.8m as it repurchased senior secured notes. Gross debt rose slightly to £361m and the cash position is up nearly 60 per cent to £83.6m.
United is expecting full-year revenues of £420m-£430m and adjusted earnings before interest, tax, depreciation and amortisation to be between £128m-£133m, all assuming that the club finishes at least third in the Premier league and reaches the quarter-finals of the Champions League and domestic cup competitions.
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