“AT UNITED, WE STRIVE FOR PERFECTION. AND IF WE FAIL, THEN WE MIGHT JUST HAVE TO SETTLE FOR EXCELLENCE.”

sir matt busby

Business Strategy

WE AIM TO INCREASE OUR REVENUE AND PROFITABILITY BY EXPANDING OUR HIGH GROWTH BUSINESSES THAT LEVERAGE OUR brand, GLOBAL COMMUNITY AND MARKETING INFRASTRUCTURE. THE KEY ELEMENTS OF OUR STRATEGY ARE:

Expand our portfolio of sponsors

We are well-positioned to continue to secure sponsorships with leading brands. We have historically implemented a proactive approach to identifying, securing and supporting sponsors. During fiscal year 2016 we announced six global sponsorship partnerships, five regional sponsorship partnerships and three financial services and telecom agreements. We experienced an 8.6% compound annual growth rate in our sponsorship revenue from fiscal year 2014 through fiscal year 2016 (the growth rate from fiscal year 2014 to fiscal year 2015 was 14.0% and from fiscal year 2015 to fiscal year 2016 was 3.4%). Our historical growth rates do not guarantee that we will achieve comparable rates in the future. In addition to developing our global sponsorship portfolio, we are focused on segmenting new opportunities by product category and territory. As part of this strategy, we opened an office in Hong Kong in August 2012, which has successfully completed multiple sponsorship contracts. This is in addition to our London and Manchester offices.

GLOBAL PARTNERS

Further develop our retail, merchandising, apparel & product licensing business

Currently, we have a 10-year agreement with adidas with respect to our global technical sponsorship and dual-branded licensing rights, which began on 1 August 2015. The agreement with adidas does not include the rights with respect to mono-branded licensing rights or the right to create and operate Manchester United branded soccer schools, physical retail channels and e-commerce retail channels. These are business areas that were previously operated by Nike and the reversion of these rights to Manchester United provides us with increased commercial opportunities and control. In the future, we plan to invest to expand our portfolio of product licensees to enhance the range of product offerings available to our followers. Additionally, we may also seek to refine how we segment the different elements of this business. We may also increase our focus on developing these rights more proactively, alone or with other partners.

Deal with ADIDAS

* as of September 2016

Exploit new media & content opportunities

The rapid shift of media consumption towards internet, mobile and social media platforms presents us with multiple growth opportunities and new revenue streams. Our digital media platforms, such as mobile sites, applications and social media, are expected to become one of the primary methods by which we engage and transact with our followers around the world. We continue to evolve our media team's capability to address these opportunities. In January 2013, we also acquired the remaining one-third stake in MUTV. Together these actions help to ensure that we have both a greater degree of control over the production, distribution and quality of our proprietary content and better insight into how to evolve our mobile & content strategy as we continue to develop and roll out carefully targeted new products and services. In addition to developing our own digital properties, we intend to leverage third party media platforms and other social media as a means of further engaging with our followers and creating a source of traffic for our digital media assets. Our mobile & content offerings are in the early stages of development and present opportunities for future growth. We believe we have the opportunity to further leverage our extensive CRM database, which includes over 43.7 million CRM records, our more than 69.8 million Facebook connections and more than 8 million Twitter account followers,. We plan to implement a carefully considered strategy to target these individuals as part of our overall digital media rollout plan.

Social media followers worldwide

* as of August 2015

Enhance the reach and distribution of our broadcasting rights

We are well-positioned to benefit from the increased value and the growth in distribution associated with the Premier League, the Champions League and other competitions. In February 2015, the Premier League announced a new UK television rights contract with Sky Sports and BT Sport worth £5.136 billion for the three seasons commencing with the 2016/17 season for its live domestic rights. The deal marked a significant increase of over 70% on the current contract and represents the largest UK TV rights deal ever signed. Coming on the heels of the current deal, which also represented an increase of over 60% on the rights for the three seasons commencing with the 2010/11 season, we believe this affirms the increasing demand for live sports and football in particular. Unlike other television programming, the unpredictable outcomes of live sports ensures that individuals consume sports programming in real time and in full, resulting in higher audiences and increased interest from television broadcasters and advertisers.

Furthermore, MUTV, our global broadcasting platform, delivers Manchester United programming to over 56 countries and territories around the world. We plan to continue to expand the distribution of MUTV supported by improving the quality of its content and its production capabilities.

 

Premier League Value

* as of September 2016