It’s fairly simple. The higher our wage bill, the less we will have to spend on transfers. Conversely, the more we spend on transfer fees, the less we have for wages.
Our long term aim is to have a higher wage bill and a lower net transfer spend. That will take time, not just one season in the PL. We haven’t turned into Man U overnight.
This is Man U’s business model.
MATCHDAY.
Commercial
Within the Commercial revenue sector, we monetize our global brand via three revenue streams: sponsorship; retail, merchandising, apparel & product licensing; and mobile & content.
Sponsorship: We monetize the value of our global brand and community of followers through marketing and sponsorship relationships with leading international and regional companies around the globe. To better leverage the strength of our brand, we have developed a global, regional and product segmentation sponsorship strategy. Our sponsorship revenue was £173.0 million, £173.0 million, and £171.5 million for each of the years ended 30 June 2019, 2018, and 2017, respectively.
Retail, Merchandising, Apparel & Product Licensing: We market and sell sports apparel, training and leisure wear and other clothing featuring the Manchester United brand on a global basis. In addition, we also sell other licensed products, from coffee mugs to bed spreads, featuring the Manchester United brand and trademarks. These products are distributed through Manchester United branded retail centers and e-commerce platforms, as well as our partners’ wholesale distribution channels. Our retail, merchandising, apparel & Our retail, merchandising, apparel & product licensing revenue was £102.1 million, £102.8 million and £104.0 million for each of the years ended 30 June 2019, 2018 and 2017, respectively.
Broadcasting
We benefit from the distribution of live football content directly from the revenue we receive and indirectly through increased global exposure for our commercial partners. Broadcasting revenue is derived from the global television rights relating to the Premier League, UEFA club competitions and other competitions. In addition, our wholly-owned global television channel, MUTV, delivers Manchester United programming to over 56 countries and territories around the world. In addition to our broadcasting channel we also launched a D2C subscription mobile application in season 2016/17 which, as of 30 June 2019, was available in over 167 territories. In addition, for our 2018 pre-season tour we also launched on four ‘Connected TV’ platforms to enable our fans to watch and subscribe to our content on more platforms, namely Amazon Fire, Apple TV, Roku and Xbox. Broadcasting revenue including, in some cases, prize money received by us in respect of various competitions, will vary from year to year as a result of variability in the amount of available prize money and the performance of our first team in such competitions. Our Broadcasting revenue was £241.2 million, £204.2 million, and £194.1 million for each of the years ended 30 June 2019, 2018, and 2017, respectively.
Matchday
We believe Old Trafford is one of the world's iconic sports venues. It currently seats 74,140 and is the largest football club stadium in the UK. We have averaged over 99% of attendance capacity for our Premier League matches in each of the last 21 years. Matchday revenue will vary from year to year as a result of the number of home games played and the performance of our first team in various competitions. Our Matchday revenue was £110.8 million, £109.8 million and £111.6 million for each of the years ended 30 June 2019, 2018 and 2017, respectively.
Total revenue for the years ended 30 June 2019, 2018 and 2017 £627.1 million, £589.8 million and £581.3 million, respectively.
Their sponsorship alone earns them more money than our entire revenue. They earn more than five times what we do. Spending money brings you success. Spending money you don’t have brings you failure.