Manchester United PLC reported that its retail, merchandising apparel and product licensing revenue, which is managed by Nike, increased 13.8 percent to £10.7 million in the second fiscal quarter ended Sept. 30 compared with the prior year quarter.
The increase was attributed primarily to additional profits earned under an merchandising and licensing agreement with Nike agreement, which expires at the end of the current season. That contract requires Nike to pay a minimum of £303 million over 13 years, plus half of annual profits from the club's merchandising and licensing operations. Nike also provides the team’s soccer kits and runs its stores in England, Singapore, Macau, Thailand and India under the agreement.
In the fiscal year ended March 31, 2013, Nike paid Manchester United the minimum fee of £25.3 million, plus £12.8 million in profits, up from £8.4 million in profits in the 2011/12 season. British media have speculated the value of the contract could triple.
With more than 650 million fans worldwide, Manchester United claims to be one of the most valuable professional sports team in the world. During the 2012/13 season, more than 5 million Manchester United-branded items, including over 2 million of the team’s soccer jerseys, were sold. The products, which are made under 200 licenses, are sold at 10,000 retail doors in over 130 countries.
Manchester United listed its stock on the New York Stock Exchange in October under the symbol MANU.
