Manchester United share price soars following record Premier League TV deal
The record £5.14bn Premier League TV deal is still a season and a half away from kicking in, but some clubs are already feeling the benefits.
Manchester United’s share price rose on the New York Stock Exchange yesterday, rising by almost five per cent to a price of $17.03 per share.
The football club’s stock spiked almost immediately after it was revealed the Premier League’s next TV deal would rise by 70 per cent.
Each Premier League game will be valued at roughly £10m thanks to bumper bids from Sky (£4.18bn) and BT Sport (£960m). From the 2016-2017 season onwards, the Premier League champions can expect around £155m in their share of the TV spoils.
Even if the unthinkable happens and England's richest club somehow finishes bottom of the league, United would still pocket a cool £99m.
In contrast, the club made £89.2m from the current deal for their seventh place finish last season. The existing broadcast agreement, worth a total of £3.01bn to the Premier League as a whole, has already provided United’s investors and fans with plenty to cheer about.
Under new manager Louis van Gaal, the club has obliterated their previous record for amount spent on transfers in a season. The Dutch tactician has been allowed to spend £170m on new players this season thanks to increases in commercial and broadcast revenue.
In the club’s accounts for the 2013-2014 season it recorded a 33.7 per cent rise in broadcasting revenue to £135.9m – its highest level in history.