Manchester United's £44m problem as sponsorship blow set to cause gaping hole

Manchester United have reported a decline in commercial revenue in their second-quarter financial results, and could be plagued by a £44million hole this summer should they fail to secure sponsorship deals. It comes as a £24m training kit sponsoring deal with Tezos came to a close last summer, and a £20m deal with DXC is set to expire at the end of the current campaign.

The commercial revenue from United for the quarter amounted to £78.5m, a decrease of £6.6m compared to the same period last year. In the second-quarter financial results announcement on Wednesday afternoon, United revealed that sponsorship revenue was £37.2million, marking a reduction of £5.8 million. United's deal with Tezos concluded at the end of June, and as a result, the club has been without a training kit sponsor for the first time since 2021/2022, following the termination of their agreement with AON.

Matheus Cunha was photographed wearing a Tezos-branded hoodie in promotional images when he transferred from Wolves, but the agreement had expired by the time Bryan Mbeumo joined. United acknowledged a drop in their sponsorship revenue in December's financial results, and the club are preparing for a further decline as the sleeve sponsorship contract with DXC Technology, estimated to be worth £20m per season, is set to expire at the end of the season.

With Tezos and DXC out of the picture, United will be £44m down in terms of sponsorship this summer unless they can find a suitable replacement. For four seasons, DXC has been showcased on the club's home, away and third kits. The multi-year collaboration has also enabled DXC to utilise their expertise to enhance United's fan engagement through their digital platforms.

The Premier League authorised sleeve sponsorship from the commencement of the 2017/18 season. United unveiled their first sleeve sponsors, Kohler, for the following campaign under a multi-year contract.

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That agreement was concluded in 2022, paving the way for DXC's involvement. United sources assert there is a robust pipeline of new sponsors poised to step forward, but the most recent financial figures underscore the necessity of finalising deals in the upcoming months.

Commercial revenue also incorporates funds generated from retail, merchandising, apparel and product licensing revenue, which amounted to £41.3m in the second quarter figures, a decrease of £0.8m from the same period last year.

Matchday revenue at Old Trafford is lower than the same period last year. United sources have attributed the £2.5m decrease primarily to United hosting three fewer home cup matches in the current quarter, compared to the equivalent quarter of the previous year.

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