Manchester United’s on-pitch demise over the past few seasons has had a significant impact on the club’s ability to increase commercial revenues.
The club’s commercial revenues rose by just ten percent from 2018/19 to 2023/24, according to research by Football Benchmark.
The Red Devils generated £302 million of commercial revenue in 2023/24, less than Manchester City (£349m) and Liverpool (£308m).
All of their so-called ‘Big Six’ rivals have increased commercial revenue at a greater pace during the timeframe, albeit from a lower base.
Arsenal 97% increase
Tottenham Hotspur 89% increase
Liverpool 64% increase
Manchester City 54% increase
Chelsea 22% increase
Manchester United 10% increase
The figures undoubtedly raise questions about previous claims made by former executive vice-chair Ed Woodward in 2018.
He insisted that United’s playing performance does not have a meaningful impact on what the club can do on the commercial side of the business.
Given United have not won the Premier League title since 2012/13, the data suggests Woodward’s comments have not aged particularly well.
Having recorded the second-highest net spend on players over the past few seasons, the club has embarked on another transfer spree this summer.
Forwards Matheus Cunha, Bryan Mbeumo and Benjamin Sesko have joined United for combined fees of more than £200m.
Andy Green, head of investment at private equity firm Rockpool Investments and finance director at Manchester United Supporters Trust, thinks the outlay is a gamble.
He says profitability will not improve without a return to the Champions League and that the transfer debt could be a significant burden if that does not happen.
Some analysts believe the construction of a new stadium is the key to opening up more lucrative commercial streams at the club.
However, with building costs projected to be at least £2 billion, Champions League qualification is a more viable short-term route to increasing commercial revenues.