Is Manchester United worth $3.6 billion today?

Manchester United, founded in 1878 and headquartered in Manchester, England, is one of England's most successful football clubs. The team was initially called "Newton Heath LYR F.C." and then changed its name to Manchester United in 1902. Manchester United has made outstanding achievements in the Premier League, winning 13 championships, six runner-ups, and four third runner-ups. It is the first club in the history of English football to win the tournament for three consecutive years. The team has 1.1 billion fans and followers worldwide, and the vast fan base provides Manchester United with a global platform. Manchester United realizes substantial revenue directly reinvested in the club's ongoing reinvestment through various channels, including sponsorships, merchandising, product licensing, broadcasting, and matchday events.

Manchester United's commercial income is the primary source, accounting for 40.8% of the total income. The club is primarily funded through advertising brand revenue, including sponsorships and merchandising licensing. Support covers club sponsorship and jersey advertising. The position of jersey advertising has multiple functions, such as the chest and the back. Broadcasting income is also one of Manchester United's essential sources of income, usually accounting for a considerable proportion of total income, once reaching one-third. Broadcasting income mainly comes from broadcasting and television rights, especially in the UEFA Champions League season. A successful Champions League season could bring close to £100m in television rights revenue. Ticket revenue accounts for about 30% of Manchester United's total revenue. Manchester United obtains ticket revenue through bundled season ticket sales. With its excellent record and high fan loyalty, ticket sales have always maintained a high level. Compared with other teams, Manchester United has a clear advantage in terms of ticket revenue. In the football industry, getting high gate receipts depends on the team's performance and results, which is very important for Manchester United.

Going back to the financial report, as of March 31, 2023, Manchester United's total revenue was 170 million pounds, an increase of 11% year-on-year. Operating loss was £4.7 million, down 47% year-on-year.

Commercial revenue for the quarter was £69.4 million, an increase of £3.8 million, or 5.8%, compared to last year.

Sponsorship income was £41 million, an increase of £1.8 million, or 4.6%, over the same period last year, mainly due to new sponsorship deals.

Retail, merchandise, apparel, and product licensing revenue was £28.4m, up £2m, or 7.6%, on the same period last year, mainly due to the increased number of games played at Old Trafford.

Broadcast revenue for the quarter was £50.7m, a decrease of £0.8m or 1.6% compared to the previous quarter, slightly down on the same period as Manchester United competed in the UEFA Europa League instead of the UEFA Champions League. But that was partially offset by the club's performances in domestic cup competitions.

Matchday revenue for the quarter was £49.9 million, an increase of £14.2 million, or 9.8%, compared to last year, as five more home games were played in the quarter compared to the same period the previous year.

Based on financial results for the third quarter ending March 31, 2023, Manchester United's revenue guidance for the current financial year has been raised to a record £630-640 million. The increase was primarily attributable to record increases in attendance and matchday revenue. Ticket sales for the 2022-23 season surpassed the 2.4 million tickets sold for the 2016-17 season, breaking the sales record. In addition, in the 2022/23 season, the Manchester United men's first team won third place in the Premier League and qualified for the upcoming 2023/24 UEFA Champions League. Ticket revenue is expected to grow further. Commercial income was also one of the drivers of United's growth this year, as new sponsorship deals were signed.

But it is worth noting that the third place in the Premier League and the promise of winning the F.A. Cup earlier has not been fulfilled. Suppose Manchester United wants to re-establish its position and achieve excellent results in the 2023/24 Champions League season. In that case, Manchester United needs to introduce high-level players, and Kane is considered the key figure in promoting the "Red Devils" to achieve a qualitative change. However, the chances of this deal being realized are not optimistic. First, Tottenham chairman Levy asked for more than 100 million euros to prevent the Premier League opponents from acquiring Kane. Secondly, Real Madrid has also joined the competition. If Kane wants to win the championship and pursue the most significant success, entering the Bernabeu is undoubtedly the most sensible choice. Recently, Manchester United intended to give up raising the offer for Mount, who will help reshape the midfield. Overall, Manchester United's hopes seem to have become somewhat unpredictable.

Although it has made money, there is no way to profit because the overall salary is too high and the player sales are too poor. And the vast debt still exists; the Glazer family believes that the scale of the debt is relatively small and uses the club's business model and income to continue to pay dividends.

So Manchester United is not worth $3.6 billion.