Document and Entity Information
Document and Entity Information | 6 Months Ended |
Dec. 31, 2022 | |
Statement | |
Entity Registrant Name | Manchester United plc |
Entity Central Index Key | 0001549107 |
Amendment Flag | false |
Document Type | 6-K |
Document Period End Date | Dec. 31, 2022 |
Current Fiscal Year End Date | --06-30 |
Document Fiscal Year Focus | 2023 |
Document Fiscal Period Focus | Q2 |
Interim consolidated statement
Interim consolidated statement of profit or loss - unaudited - GBP (£) £ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Interim consolidated statement of profit or loss - unaudited | ||||
Revenue from contracts with customers | £ 167,368 | £ 185,440 | £ 311,022 | £ 311,901 |
Operating expenses | (167,640) | (179,717) | (331,284) | (333,820) |
(Loss)/profit on disposal of intangible assets | (2,588) | (318) | 14,020 | 17,158 |
Operating (loss)/profit | (2,860) | 5,405 | (6,242) | (4,761) |
Finance costs | (26,277) | (7,473) | (21,956) | (22,591) |
Finance income | 38,392 | 1 | 3,083 | 5,465 |
Net finance income/(costs) | 12,115 | (7,472) | (18,873) | (17,126) |
Profit/(loss) before income tax | 9,255 | (2,067) | (25,115) | (21,887) |
Income tax (expense)/credit | (2,949) | 665 | 4,905 | 4,946 |
Profit/(loss) for the period | £ 6,306 | £ (1,402) | £ (20,210) | £ (16,941) |
Earnings/(loss) per share during the period: | ||||
Basic earnings/(loss) per share | £ 0.0387 | £ (0.0086) | £ (0.1239) | £ (0.1039) |
Diluted earnings/(loss) per share | £ 0.0385 | £ (0.0086) | £ (0.1239) | £ (0.1039) |
Interim consolidated statemen_2
Interim consolidated statement of comprehensive income/(loss) - unaudited - GBP (£) £ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Interim consolidated statement of comprehensive income/(loss) - unaudited | ||||
Profit/(loss) for the period | £ 6,306 | £ (1,402) | £ (20,210) | £ (16,941) |
Items that may be reclassified to profit or loss | ||||
Movement on hedges | 2,106 | 1,395 | 1,718 | 1,166 |
Income tax expense relating to movements on hedges | (516) | (350) | (419) | (291) |
Other comprehensive income for the period, net of income tax | 1,590 | 1,045 | 1,299 | 875 |
Total comprehensive income/(loss) for the period | £ 7,896 | £ (357) | £ (18,911) | £ (16,066) |
Interim consolidated balance sh
Interim consolidated balance sheet - unaudited - GBP (£) £ in Thousands | Dec. 31, 2022 | Jun. 30, 2022 | Dec. 31, 2021 |
Non-current assets | |||
Property, plant and equipment | £ 243,434 | £ 242,661 | £ 245,845 |
Right-of-use assets | 3,353 | 4,072 | 3,747 |
Investment properties | 20,133 | 20,273 | 20,413 |
Intangible assets | 871,529 | 743,278 | 812,252 |
Trade receivables | 21,224 | 29,757 | 41,024 |
Derivative financial instruments | 22,189 | 16,462 | 4,434 |
Total non-current assets | 1,181,862 | 1,056,503 | 1,127,715 |
Current assets | |||
Inventories | 3,272 | 2,200 | 2,876 |
Prepayments | 26,087 | 15,534 | 20,852 |
Contract assets - accrued revenue | 53,505 | 36,239 | 69,828 |
Trade receivables | 116,409 | 49,210 | 54,063 |
Other receivables | 2,426 | 1,569 | 1,110 |
Income tax receivable | 4,479 | 4,590 | 834 |
Derivative financial instruments | 7,876 | 6,597 | 1,146 |
Cash and cash equivalents | 31,045 | 121,223 | 87,434 |
Total current assets | 245,099 | 237,162 | 238,143 |
Total assets | 1,426,961 | 1,293,665 | 1,365,858 |
Equity | |||
Share capital | 53 | 53 | 53 |
Share premium | 68,822 | 68,822 | 68,822 |
Treasury shares | (21,305) | (21,305) | (21,305) |
Merger reserve | 249,030 | 249,030 | 249,030 |
Hedging reserve | 2,249 | 950 | (9,561) |
Retained deficit | (189,097) | (170,042) | (40,294) |
Total equity | 109,752 | 127,508 | 246,745 |
Non-current liabilities | |||
Deferred tax liabilities | 2,413 | 7,402 | 30,422 |
Contract liabilities - deferred revenue | 7,274 | 16,697 | 24,610 |
Trade and other payables | 160,495 | 102,347 | 102,553 |
Borrowings | 535,654 | 530,365 | 477,052 |
Lease liabilities | 2,475 | 2,869 | 2,994 |
Derivative financial instruments | 519 | 49 | 3,908 |
Provisions | 89 | 11,586 | 4,589 |
Total non-current liabilities | 708,919 | 671,315 | 646,128 |
Current liabilities | |||
Contract liabilities - deferred revenue | 160,554 | 165,847 | 155,931 |
Trade and other payables | 227,772 | 220,587 | 207,346 |
Income tax liabilities | 2,131 | ||
Borrowings | 206,246 | 105,757 | 105,185 |
Lease liabilities | 804 | 1,561 | 763 |
Derivative financial instruments | 32 | 859 | |
Provisions | 12,914 | 1,058 | 770 |
Total current liabilities | 608,290 | 494,842 | 472,985 |
Total equity and liabilities | £ 1,426,961 | £ 1,293,665 | £ 1,365,858 |
Interim consolidated statemen_3
Interim consolidated statement of changes in equity - unaudited | Share capital GBP (£) | Share premium GBP (£) | Treasury shares GBP (£) | Merger reserve GBP (£) | Hedging reserve GBP (£) | Retained earnings GBP (£) | GBP (£) | USD ($) |
Balance at beginning of the period at Jun. 30, 2021 | £ 53,000 | £ 68,822,000 | £ (21,305,000) | £ 249,030,000 | £ (10,436,000) | £ (13,652,000) | £ 272,512,000 | |
Comprehensive income (loss) | ||||||||
Loss for the period | (16,941,000) | (16,941,000) | ||||||
Cash flow hedges | 1,166,000 | 1,166,000 | ||||||
Tax expense relating to movement on hedges | (291,000) | (291,000) | ||||||
Total comprehensive income/(loss) for the period | 875,000 | (16,941,000) | (16,066,000) | |||||
Equity-settled share-based payments | 968,000 | 968,000 | ||||||
Dividends paid | (10,669,000) | (10,669,000) | $ (14,669,000) | |||||
Balance at end of the period at Dec. 31, 2021 | 53,000 | 68,822,000 | (21,305,000) | 249,030,000 | (9,561,000) | (40,294,000) | 246,745,000 | |
Comprehensive income (loss) | ||||||||
Loss for the period | (98,569,000) | (98,569,000) | ||||||
Cash flow hedges | 3,982,000 | 3,982,000 | ||||||
Tax expense relating to movement on hedges | (996,000) | (996,000) | ||||||
Total comprehensive income/(loss) for the period | 2,986,000 | (98,569,000) | (95,583,000) | |||||
Reclassified | 7,525,000 | (7,525,000) | ||||||
Equity-settled share-based payments | (770,000) | (770,000) | ||||||
Dividends paid | (22,884,000) | (22,884,000) | ||||||
Balance at end of the period at Jun. 30, 2022 | 53,000 | 68,822,000 | (21,305,000) | 249,030,000 | 950,000 | (170,042,000) | 127,508,000 | |
Comprehensive income (loss) | ||||||||
Loss for the period | (20,210,000) | (20,210,000) | ||||||
Cash flow hedges | 1,718,000 | 1,718,000 | ||||||
Tax expense relating to movement on hedges | (419,000) | (419,000) | ||||||
Total comprehensive income/(loss) for the period | 1,299,000 | (20,210,000) | (18,911,000) | |||||
Equity-settled share-based payments | 1,155,000 | 1,155,000 | ||||||
Dividends paid | 0 | |||||||
Balance at end of the period at Dec. 31, 2022 | £ 53,000 | £ 68,822,000 | £ (21,305,000) | £ 249,030,000 | £ 2,249,000 | £ (189,097,000) | £ 109,752,000 |
Interim consolidated statemen_4
Interim consolidated statement of cash flows - unaudited - GBP (£) £ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flow from operating activities | ||||
Cash (used in)/generated from operations | £ (56,633) | £ (25,567) | £ (53,014) | £ 46,120 |
Interest paid | (4,595) | (2,161) | (14,223) | (9,953) |
Interest received | 59 | 1 | 77 | 3 |
Tax paid | (340) | (3,766) | (392) | (4,101) |
Net cash (outflow)/inflow from operating activities | (61,509) | (31,493) | (67,552) | 32,069 |
Cash flow from investing activities | ||||
Payments for property, plant and equipment | (2,706) | (1,874) | (7,099) | (5,502) |
Payments for intangible assets | (29,868) | (18,715) | (129,892) | (90,915) |
Proceeds from sale of intangible assets | 2,071 | 1,932 | 13,733 | 13,015 |
Net cash outflow from investing activities | (30,503) | (18,657) | (123,258) | (83,402) |
Cash flow from financing activities | ||||
Proceeds from borrowings | 100,000 | 40,000 | 100,000 | 40,000 |
Principal elements of lease payments | (571) | (432) | (1,449) | (848) |
Dividends paid | (10,669) | |||
Net cash inflow from financing activities | 99,429 | 39,568 | 98,551 | 28,483 |
Net increase/(decrease) in cash and cash equivalents | 7,417 | (10,582) | (92,259) | (22,850) |
Cash and cash equivalents at beginning of period | 24,277 | 98,666 | 121,223 | 110,658 |
Effect of exchange rate changes on cash and cash equivalents | (649) | (650) | 2,081 | (374) |
Cash and cash equivalents at end of period | £ 31,045 | £ 87,434 | £ 31,045 | £ 87,434 |
General information
General information | 6 Months Ended |
Dec. 31, 2022 | |
General information | |
General information | 1 General information Manchester United plc (the “Company”) and its subsidiaries (together the “Group”) is a men’s and women’s professional football club together with related and ancillary activities. The Company incorporated under the Companies Law (as amended) of the Cayman Islands. The Company’s shares are listed on the New York Stock Exchange under the symbol “MANU”. These financial statements are presented in pounds sterling and all values are rounded to the nearest thousand (£’000) except when otherwise indicated. These interim consolidated financial statements were approved for issue by the Audit Committee on 31 March 2023. |
Basis of preparation
Basis of preparation | 6 Months Ended |
Dec. 31, 2022 | |
Basis of preparation | |
Basis of preparation | 2 Basis of preparation The interim consolidated financial statements of Manchester United plc have been prepared on a going concern basis and in accordance with International Accounting Standard 34 “Interim Financial Reporting”. The interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto for the year ended 30 June 2022, as filed with the Securities and Exchange Commission on 23 September 2022, contained within the Company’s Annual Report on Form 20-F, which were prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”). The report of the auditors on those financial statements was unqualified and did not contain an emphasis of matter paragraph. The results of operations for the interim periods should not be considered indicative of results to be expected for the full fiscal year. Going concern The Group has cash resources as of 31 December 2022 of £31.0 million, with all funds held as cash and cash equivalents and therefore available on demand. As of 31 December 2022, the Group also has access to undrawn revolving facilities of £100 million. The Group’s debt facilities include the $425 million senior secured notes and the $225 million secured term loan facility, the majority of which attract fixed interest rates. As of 31 December 2022, the Group also has £200 million of outstanding loans under our revolving facilities. The Group’s secured notes and term loan mature in 2027 and 2029 respectively. Of the Group’s total available revolving facilities of £300 million, £150 million expires in 2025 and £150m expires in 2027. As of 31 December 2022, the Company was in compliance with all debt covenants. As a result of a detailed assessment, including prudent assumptions around the men’s first team’s performance, and with reference to the Group’s balance sheet, existing committed facilities, but also acknowledging the inherent uncertainty of the current economic outlook, Management has concluded that the Group is able to meet its obligations when they fall due for a period of at least 12 months after the date of this report. For this reason, the Group continues to adopt the going concern basis for preparing the unaudited interim consolidated financial statements. |
Accounting policies
Accounting policies | 6 Months Ended |
Dec. 31, 2022 | |
Accounting policies | |
Accounting policies | 3 Accounting policies The accounting policies adopted are consistent with those of the consolidated financial statements for the year ended 30 June 2022, except as described below. Taxes on income in the interim periods are accrued using the tax rate that would be applicable to expected total annual earnings. New and amended standards and interpretations adopted by the Group No new or amended IFRS standards or interpretations, effective for the first time for the financial year beginning on 1 July 2022, have had a material impact on the interim consolidated financial statements of the Group. New and amended standards and interpretations issued but not yet adopted There are no IFRS or IFRS IC interpretations that are not yet effective that would be expected to have a material impact on the Group in the future reporting periods or on foreseeable future transactions. 3 Accounting policies (continued) Effect of IBOR reform For the year ended 30 June 2021, we adopted the Phase 2 amendments to IFRS 9, “Financial Instruments” for the first time. On 10 December 2021 and 13 December 2021, the Group amended and restated its revolving facility agreements with Bank of America and Santander plc respectively, to provide for an alternate method of calculating our interest rates following the cessation of GBP LIBOR and the 1-week and 2-month USD LIBOR rates. Interest is now calculated based on the Sterling Overnight Index Average (SONIA) plus a credit adjustment spread. Our secured term loan facility of $225.0 million remains subject to USD LIBOR which is expected to be phased out completely by 30 June 2023. Therefore, in due course, the Group will need to re-negotiate terms with its lender and amend the terms of the related interest swap. Such amendments are expected to be achieved without material financial impact to the Group. The following table contains details of all financial instruments held at 31 December 2022 which reference USD LIBOR and have not yet transitioned to an alternative interest rate benchmark, such that phase 1 reliefs continue to be applied to the hedge relationship as there remains uncertainty arising from IBOR reform: Carrying value as at 31 December 2022 Assets Liabilities £000 £000 Borrowings (measured at amortised cost) — (185,028) Derivative financial instruments 4,901 — Total 4,901 (185,028) The Group has adopted the following hedge accounting reliefs provided by Phase 2 of the amendments: (i) Hedge designation – When the Phase 1 amendments cease to apply, the group will amend its cash flow hedge designation to reflect changes which are required by IBOR reform, but only to make one or more of these changes: ● Designating an alternative benchmark rate (contractually or non-contractually specified) as a hedged risk; ● Amending the description of the hedged item, including the designated portion of the cash flows being hedged; or ● Amending the description of the hedging instrument. The Group will update its hedge documentation to reflect these changes at the end of the reporting period in which the changes are made. The amendments to hedge documentation do not require the Group to discontinue the cash flow hedge relationship. (ii) Risk components – The Group is permitted to designate an alternative benchmark rate as a non-contractually specified risk component, even if it is not separately identifiable at the date when it is designated, provided that the Group reasonably expects that it will meet the requirements within 24 months of the first designation and the risk component is reliably measurable. The Group has not designated any alternative benchmark rates as risk components in any hedge relationships during the period. |
Critical estimates and judgment
Critical estimates and judgments | 6 Months Ended |
Dec. 31, 2022 | |
Critical estimates and judgments | |
Critical estimates and judgments | 4 Critical estimates and judgments The preparation of interim financial statements requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates. The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the interim consolidated financial statements are considered to be: ● Estimate of minimum guarantee revenue recognition – see Note 5 ● Estimate of fair value of registrations – see Note 17 ● Recognition of deferred tax assets – see Note 18 ● Recognition of tax related provisions - see Note 27 Management does not consider there to be any significant judgements in the preparation of the financial statements. In preparing these interim consolidated financial statements, the key sources of estimation uncertainty were the same as those that applied to the consolidated financial statements for the year ended 30 June 2022. |
Seasonality of revenue
Seasonality of revenue | 6 Months Ended |
Dec. 31, 2022 | |
Seasonality of revenue | |
Seasonality of revenue | 5 Seasonality of revenue We experience seasonality in our revenue and cash flow, limiting the overall comparability of interim financial periods. In any given interim period, our total revenue can vary based on the number of games played in that period, which affects the amount of Matchday and Broadcasting revenue recognized. This is particularly evident in the 2022/23 season, in which the Premier League Season paused for six weeks in November 2022 for the FIFA World Cup to take place. Similarly, certain of our costs are derived from hosting games at Old Trafford, and these costs will also vary based on the number of games played in the period. We historically recognize the most revenue in our second and third fiscal quarters due to the scheduling of matches. However, a strong performance by our first team in European competitions and domestic cups could result in significant additional Matchday and Broadcasting revenue, and consequently we may also recognize the most revenue in our fourth fiscal quarter in those years. i) Commercial Commercial revenue (whether settled in cash or value in kind) comprises revenue receivable from the exploitation of the Manchester United brand through sponsorship and other commercial agreements, including minimum guaranteed revenue, revenue receivable from retailing Manchester United branded merchandise in the UK and licensing the manufacture, distribution and sale of such goods globally, and fees for the Manchester United men’s first team undertaking tours. Revenue is recognized over the term of the sponsorship agreement in line with the performance obligations included within the contract and based on the sponsorship rights enjoyed by the individual sponsor. In instances where the sponsorship rights remain the same over the duration of the contract, revenue is recognized as performance obligations are satisfied evenly over time (i.e. on a straight-line basis). Retail revenue is recognized when control of the products has transferred, being at the point of sale to the customer. License revenue in respect of right to access licences is recognized in line with the performance obligations included within the contract, in instances where these remain the same over the duration of the contract, revenue is recognized evenly on a time elapsed (i.e. straight-line) basis. Sales-based royalty revenue is recognized only when the subsequent sale is made. 5 Seasonality of revenue (continued) Significant estimates A number of sponsorship contracts contain significant estimates in relation to the allocation and recognition of revenue in line with performance obligations. Minimum guaranteed revenue is recognized over the term of the sponsorship agreement in line with the performance obligations included within the contract and based on the sponsorship benefits enjoyed by the individual sponsor. In instances where the sponsorship rights remain the same over the duration of the contract, revenue is recognized as performance obligations are satisfied evenly over time (i.e. on a straight-line basis). The Group has a 10-year agreement with adidas which began on 1 August 2015. The minimum guarantee payable by adidas over the term of the agreement is £750 million, subject to certain adjustments. Payments due in a particular year may increase if the club’s men’s first team wins the Premier League, FA Cup or Champions League, or decrease if the club’s men’s first team fails to participate in the Champions League for two or more consecutive seasons with the maximum possible increase being £4 million per year and the maximum possible reduction being 30% of the applicable payment for the year in which the second or other consecutive season of non-participation falls. Participation in the UEFA Champions League is typically secured via a top 4 finish in the Premier League or winning the UEFA Europa League. Revenue is currently being recognized based on management’s estimate as at 31 December 2022 that the full minimum guarantee amount is the most likely amount that will be received, as management does not expect two consecutive seasons of non-participation in the Champions League. ii) Broadcasting Broadcasting revenue represents revenue receivable from all UK and overseas broadcasting contracts, including contracts negotiated centrally by the Premier League and UEFA. Distributions from the Premier League comprise a fixed element (which is recognized evenly as each performance obligation is satisfied i.e.as each Premier League match is played), facility fees for live coverage and highlights of domestic home and away matches (which are recognized when the respective performance obligation is satisfied i.e. the respective match is played), and merit awards (which, being variable consideration, are recognized when each performance obligation is satisfied i.e. as each Premier League match is played, based on management’s estimate of where the men’s first team will finish at the end of the football season i.e. the most likely outcome and to the extent that it is deemed highly probably that no revenue recognized will be reversed). Distributions from UEFA relating to participation in European competitions comprise market pool payments (which are recognized over the matches played in the competition, a portion of which reflects Manchester United’s performance relative to the other Premier League clubs in the competition), fixed amounts for participation in individual matches (which are recognized when the matches are played) and an individual club coefficient share (which is recognized over the group stage matches). iii) Matchday Matchday revenue is recognized based on matches played throughout the year with revenue from each match (including season ticket allocated amounts) only being recognized when the performance obligation is satisfied i.e. the match has been played. Revenue from related activities such as Conference and Events or the Museum is recognized as the event or service is provided or the facility is used. Matchday revenue includes revenue receivable from all domestic and European match day activities from Manchester United games at Old Trafford, together with the Group’s share of gate receipts from domestic cup matches not played at Old Trafford, and fees for arranging other events at the Old Trafford stadium. As the Group acts as the principal in the sale of match tickets, the share of gate receipts payable to the other participating club and competition organizer for domestic cup matches played at Old Trafford is treated as an operating expense. |
Revenue from contracts with cus
Revenue from contracts with customers | 6 Months Ended |
Dec. 31, 2022 | |
Revenue from contracts with customers | |
Revenue from contracts with customers | 6 Revenue from contracts with customers 6.1 Disaggregation of revenue from contracts with customers The principal activity of the Group is the operation of men’s and women’s professional football clubs. All of the activities of the Group support the operation of the football clubs and the success of the men’s first team in particular is critical to the on-going development of the Group. Consequently the chief operating decision maker (being the Board and executive officers of Manchester United plc) regards the Group as operating in one material segment, being the operation of professional football clubs. All revenue derives from the Group’s principal activity in the United Kingdom. Revenue can be analysed into its three main components as follows: Three months ended Six months ended 31 December 31 December 2022 2021 2022 2021 £’000 £’000 £’000 £’000 Sponsorship 50,423 35,215 108,234 71,484 Retail, merchandising, apparel & product licensing 28,266 29,193 57,843 57,289 Commercial 78,689 64,408 166,077 128,773 Domestic competitions 44,399 46,383 72,026 69,262 European competitions 12,895 38,266 18,582 56,813 Other 1,495 1,764 3,184 3,680 Broadcasting 58,789 86,413 93,792 129,755 Matchday 29,890 34,619 51,153 53,373 167,368 185,440 311,022 311,901 6.2 Assets and liabilities related to contracts with customers Details of movements on assets related to contracts with customers are as follows: Current contract assets – accrued revenue £’000 At 1 July 2021 40,544 Recognized in revenue during the period 66,055 Cash received/amounts invoiced during the period (36,771) At 31 December 2021 69,828 Recognized in revenue during the period 33,567 Cash received/amounts invoiced during the period (67,156) At 30 June 2022 36,239 Recognized in revenue during the period 64,230 Cash received/amounts invoiced during the period (46,964) At 31 December 2022 53,505 6 Revenue from contracts with customers (continued) 6.2 Assets and liabilities related to contracts with customers (continued) A contract asset (accrued revenue) is recognized if commercial, broadcasting or Matchday revenue performance obligations are satisfied prior to unconditional consideration being due under the contract. Details of movements on liabilities related to contracts with customers are as follows: Current Non-current contract contract Total contract liabilities – liabilities – liabilities – deferred deferred deferred revenue revenue revenue £’000 £’000 £’000 At 1 July 2021 (117,984) (22,942) (140,926) Recognized in revenue during the period 75,882 — 75,882 Cash received/amounts invoiced during the period (115,497) — (115,497) Reclassified to current during the period 1,668 (1,668) — At 31 December 2021 (155,931) (24,610) (180,541) Recognized in revenue during the period 31,072 — 31,072 Cash received/amounts invoiced during the period (33,075) — (33,075) Reclassified to current during the period (7,913) 7,913 — At 30 June 2022 (165,847) (16,697) (182,544) Recognized in revenue during the period 132,606 — 132,606 Cash received/amounts invoiced during the period (117,890) — (117,890) Reclassified to current during the period (9,423) 9,423 — At 31 December 2022 (160,554) (7,274) (167,828) Commercial, broadcasting and Matchday consideration which is received in advance of the performance obligation being satisfied is treated as a contract liability (deferred revenue). The deferred revenue is then recognized as revenue when the performance obligation is satisfied. The Group receives substantial amounts of deferred revenue prior to the previous financial year end which is then recognized as revenue throughout the current year and, where applicable, future financial years. |
Operating expenses
Operating expenses | 6 Months Ended |
Dec. 31, 2022 | |
Operating expenses | |
Operating expenses | 7 Operating expenses Three months ended Six months ended 31 December 31 December 2022 2021 2022 2021 £’000 £’000 £’000 £’000 Employee benefit expenses (77,310) (97,745) (159,566) (186,250) Depreciation – property, plant and equipment (Note 14) (2,953) (3,066) (5,927) (6,259) Depreciation – right-of-use assets (Note 15) (586) (443) (1,020) (871) Depreciation – investment property (Note 16) (70) (70) (140) (140) Amortization (Note 17) (44,971) (38,653) (85,110) (73,787) Sponsorship, other commercial and broadcasting costs (4,353) (4,453) (15,065) (9,994) External Matchday costs (7,703) (6,777) (13,659) (12,438) Property costs (5,090) (2,950) (9,518) (5,246) Other operating expenses (24,604) (15,568) (41,279) (28,843) Exceptional items (Note 8) — (9,992) — (9,992) (167,640) (179,717) (331,284) (333,820) |
Exceptional items
Exceptional items | 6 Months Ended |
Dec. 31, 2022 | |
Exceptional items | |
Exceptional items | 8 Exceptional items Three months ended Six months ended 31 December 31 December 2022 2021 2022 2021 £’000 £’000 £’000 £’000 Compensation paid for loss of office — (9,127) — (9,127) Football League pension scheme deficit (Note 29) — (865) — (865) — (9,992) — (9,992) Compensation paid for loss of office relates to amounts payable to a former men’s first team manager and certain members of the coaching staff. The Football League pension scheme deficit reflects the present value of the additional contributions the Group is expected to pay to remedy the revised deficit of the scheme pursuant to the latest triennial actuarial valuation. |
(Loss)_profit on disposal of in
(Loss)/profit on disposal of intangible assets | 6 Months Ended |
Dec. 31, 2022 | |
(Loss)/profit on disposal of intangible assets | |
(Loss)/profit on disposal of intangible assets | 9 (Loss)/profit on disposal of intangible assets Three months ended Six months ended 31 December 31 December 2022 2021 2022 2021 £’000 £’000 £’000 £’000 (Loss)/profit on disposal of registrations (2,588) (660) 14,020 16,658 Player loan income — 342 — 500 (2,588) (318) 14,020 17,158 |
Net finance income_(costs)
Net finance income/(costs) | 6 Months Ended |
Dec. 31, 2022 | |
Net finance income/(costs) | |
Net finance income/(costs) | 10 Net finance income/(costs) Three months ended Six months ended 31 December 31 December 2022 2021 2022 2021 £’000 £’000 £’000 £’000 Interest payable on bank loans and overdrafts (393) (430) (1,206) (945) Interest payable on secured term loan facility, senior secured notes and revolving facilities (7,552) (4,678) (13,762) (9,260) Interest payable on lease liabilities (Note 15) (41) (25) (64) (50) Amortization of issue costs on secured term loan facility and senior secured notes (188) (183) (365) (354) Foreign exchange losses on retranslation of unhedged US dollar borrowings (1) — (591) (2,703) (10,560) Unwinding of discount relating to registrations (2,305) (633) (3,477) (1,212) Interest on provisions (78) — (138) — Hedge ineffectiveness on cash flow hedges — (87) (241) (210) Fair value movement on derivative financial instruments: Embedded foreign exchange derivatives (15,720) (846) — — Total finance costs (3) (26,277) (7,473) (21,956) (22,591) Interest receivable on short-term bank deposits 61 1 191 3 Foreign exchange gains on retranslation of unhedged US dollar borrowings (2) 37,737 — — — Reclassified from hedging reserve — — — 326 Hedge ineffectiveness on cash flow hedges 594 — — — Fair value movement on derivative financial instruments: Embedded foreign exchange derivatives — — 2,892 5,136 Total finance income (3) 38,392 1 3,083 5,465 Net finance income/(costs) 12,115 (7,472) (18,873) (17,126) (1) (2) (3) |
Income tax (expense)_credit
Income tax (expense)/credit | 6 Months Ended |
Dec. 31, 2022 | |
Income tax (expense)/credit | |
Income tax (expense)/credit | 11 Income tax (expense)/credit Three months ended Six months ended 31 December 31 December 2022 2021 2022 2021 £’000 £’000 £’000 £’000 Current tax Current tax on loss/profit for the period (67) (60) (136) (117) Foreign tax (341) (17) (367) (352) Total current tax expense (408) (77) (503) (469) Deferred tax Origination and reversal of temporary differences (2,541) 742 5,408 5,415 Total deferred tax credit (2,541) 742 5,408 5,415 Total income (expense)/credit (2,949) 665 4,905 4,946 Tax is recognized based on management’s estimate of the weighted average annual tax rate expected for the full financial year. Based on current forecasts, the estimated weighted average annual tax rate used for the year to 30 June 2023 is 20.99% (30 June 2022: 23.43%). The current year estimated weighted average annual tax rate of 20.99% is driven by UK deferred tax movements, recognized at the substantively enacted increase in UK Corporation tax rate of 25%, effective April 2023. 11 Income tax (expense)/credit (continued) The prior year estimated weighted average annual tax rate of 23.43% was also largely driven by the UK deferred tax movements. In addition to the amounts recognized in the statement of profit or loss, the following amounts relating to tax have been recognized in other comprehensive income: Three months ended Six months ended 31 December 31 December 2022 2021 2022 2021 £’000 £’000 £’000 £’000 Deferred tax (Note 18) (517) (350) (419) (291) Total income tax expense recognized in other comprehensive income (517) (350) (419) (291) |
Earnings_(loss) per share
Earnings/(loss) per share | 6 Months Ended |
Dec. 31, 2022 | |
Earnings/(loss) per share | |
Earnings/(loss) per share | 12 Earnings/(loss) per share Three months ended Six months ended 31 December 31 December 2022 2021 2022 2021 Profit/(loss) for the period (£’000) 6,306 (1,402) (20,210) (16,941) Basic earnings/(loss) per share (pence) 3.87 (0.86) (12.39) (10.39) Diluted earnings/(loss) per share (pence) (1) 3.85 (0.86) (12.39) (10.39) (i) Basic earnings/(loss) per share Basic earnings/(loss) per share is calculated by dividing the profit/(loss) for the period by the weighted average number of ordinary shares in issue during the period. (ii) Diluted earnings/(loss) per share Diluted earnings/(loss) per share is calculated by adjusting the weighted average number of ordinary shares in issue during the year to assume conversion of all dilutive potential ordinary shares. The Company has one category of dilutive potential ordinary shares: share awards pursuant to the 2012 Equity Incentive Plan (the “Equity Plan”). Share awards pursuant to the Equity Plan are assumed to have been converted into ordinary shares at the beginning of the financial year, or, if later, the date of issue of the potential ordinary shares. (iii) Weighted average number of shares used as the denominator Three months ended Six months ended 31 December 31 December 2022 2021 2022 2021 Number Number Number Number ‘000 ‘000 ‘000 ‘000 Class A ordinary shares 52,013 53,962 52,013 49,466 Class B ordinary shares 112,732 110,724 112,732 115,216 Treasury shares (1,683) (1,683) (1,683) (1,683) Weighted average number of ordinary shares used as the denominator in calculating basic loss per share 163,062 163,003 163,062 162,999 Adjustment for calculation of diluted earnings per share assumed conversion into Class A ordinary shares (1) 543 — — — Weighted average number of ordinary shares and potential ordinary shares used as the denominator in calculating diluted loss per share (1) 163,605 163,003 163,062 162,999 (1) For the six months ended 31 December 2022 and the three and six months ended 31 December 2021, potential ordinary shares are anti-dilutive, as their inclusion in the diluted loss per share calculation would reduce the loss per share, and hence have been excluded. |
Dividends
Dividends | 6 Months Ended |
Dec. 31, 2022 | |
Dividends | |
Dividends | 13 Dividends Dividends paid in the six months ended 31 December 2022 amounted to £ nil . Dividends paid in the six months ended 31 December 2021 amounted to $14,669,000 ( $0.09 per share), the pounds sterling equivalent of which was £10,669,000 . |
Property, plant and equipment
Property, plant and equipment | 6 Months Ended |
Dec. 31, 2022 | |
Property, plant and equipment. | |
Property, plant and equipment | 14 Property, plant and equipment Freehold Plant and Fixtures property machinery and fittings Total £’000 £’000 £’000 £’000 At 1 July 2022 Cost 281,377 39,562 75,394 396,333 Accumulated depreciation (63,261) (34,293) (56,118) (153,672) Net book amount 218,116 5,269 19,276 242,661 Six months ended 31 December 2022 Opening net book amount 218,116 5,269 19,276 242,661 Additions 1,884 1,167 3,649 6,700 Depreciation charge (1,703) (1,330) (2,894) (5,927) Closing net book amount 218,297 5,106 20,031 243,434 At 31 December 2022 Cost 283,261 40,729 79,043 403,033 Accumulated depreciation (64,964) (35,623) (59,012) (159,599) Net book amount 218,297 5,106 20,031 243,434 At 1 July 2021 Cost 278,987 38,309 73,528 390,824 Accumulated depreciation (59,867) (32,964) (50,934) (143,765) Net book amount 219,120 5,345 22,594 247,059 Six months ended 31 December 2021 Opening net book amount 219,120 5,345 22,594 247,059 Additions 2,142 989 1,914 5,045 Transfers — 232 (232) — Depreciation charge (1,695) (1,587) (2,977) (6,259) Closing net book amount 219,567 4,979 21,299 245,845 At 31 December 2021 Cost 281,129 39,559 75,181 395,869 Accumulated depreciation (61,562) (34,580) (53,882) (150,024) Net book amount 219,567 4,979 21,299 245,845 |
Leases
Leases | 6 Months Ended |
Dec. 31, 2022 | |
Leases | |
Leases | 15 Leases (i) Amounts recognized in the consolidated balance sheet The balance sheet shows the following amounts relating to leases: Right-of-use assets: 31 December 30 June 31 December 2022 2022 2021 £’000 £’000 £’000 Property 2,925 3,655 3,328 Plant and machinery 428 417 419 Total 3,353 4,072 3,747 Additions to right-of-use assets for the six months ended 31 December 2022 amounted to £301,000 and for the year ended 30 June 2022 amounted to £1,428,000. Lease liabilities: 31 December 30 June 31 December 2022 2022 2021 £’000 £’000 £’000 Current 804 1,561 763 Non-current 2,475 2,869 2,994 Total lease liabilities 3,279 4,430 3,757 The following table provides an analysis of the movements in lease liabilities: £’000 At 1 July 2021 4,340 Cash flows (868) Additions 235 Accretion expense 50 At 31 December 2021 3,757 Cash flows (576) Additions 1,202 Accretion expense 47 At 30 June 2022 4,430 Cash flows (1,515) Additions 300 Accretion expense 64 At 31 December 2022 3,279 15 Leases (continued) (ii) Amounts recognized in the consolidated statement of profit or loss: Three months ended Six months ended 31 December 31 December 2022 2021 2022 2021 £’000 £’000 £’000 £’000 Depreciation charge of right-of-use assets Property (361) (388) (730) (772) Plant and machinery (225) (55) (290) (99) (586) (443) (1,020) (871) Interest expense (included in finance costs) (41) (25) (64) (50) Expense relating to short-term leases (included in operating expenses) (99) (97) (194) (193) Expense relating to low value leases (included in operating expenses) — (10) — (21) (iii) The group’s leasing activities and how these are accounted for The Group leases various offices and equipment. All leases with a term of more than 12 months, unless the underlying asset is of low value, are recognized as a right-of-use asset, with a corresponding lease liability, at the date at which the leased asset is available for use by the Group. The lease agreements do not impose any covenants other than the security interests in the right-of-use assets that are held by the lessor. Right-of-use assets may not be used as security for borrowing purposes. Lease liabilities are initially measured on a present value basis. Lease liabilities include the net present value of lease payments, less any lease incentives receivable. The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be determined, which is generally the case for leases of the Group, the Group’s incremental borrowing rate is used, being the rate that the Group would have to pay to borrow the funds necessary to obtain an asset of similar value to the right-of-use asset in a similar economic environment with similar terms, security and conditions. Lease payments are allocated between principal and finance cost. The finance cost is charged to profit or loss over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period. Right-of-use assets are initially measured at cost comprising the following: ● the amount of the initial measurement of the lease liability; ● any lease payments made at or before the commencement date less any lease incentives received; ● any initial direct costs; and ● restoration costs. Right-of-use assets are depreciated over the shorter of the asset’s useful life and the lease term on a straight-line basis. Payments associated with short-term leases of property, plant and equipment and all leases of low-value assets are recognized on a straight-line basis as an expense in profit or loss. Short-term leases are leases with a lease term of 12 months or less. |
Investment property
Investment property | 6 Months Ended |
Dec. 31, 2022 | |
Investment property | |
Investment properties | 16 Investment property Total £’000 At 1 July 2022 Cost 20,553 Accumulated depreciation and impairment (280) Net book amount 20,273 Six months ended 31 December 2022 Opening net book amount 20,273 Depreciation charge (140) Closing net book amount 20,133 At 31 December 2022 Cost 32,193 Accumulated depreciation and impairment (12,060) Net book amount 20,133 At 1 July 2021 Cost 32,193 Accumulated depreciation and impairment (11,640) Net book amount 20,553 Six months ended 31 December 2021 Opening net book amount 20,553 Depreciation charge (140) Closing net book amount 20,413 At 31 December 2021 Cost 32,193 Accumulated depreciation and impairment (11,780) Net book amount 20,413 Investment properties were externally valued as of 30 June 2022 in accordance with the Royal Institution of Chartered Surveyors (“RICS”) Valuation - Global Standards 2017 on the basis of Fair Value (as defined in the Standards). The fair value of investment properties as of 30 June 2022 was £38,250,000. Management has considered the carrying amount of investment property as of 31 December 2022 and concluded that, as there are no indicators of impairment, an impairment test is not required. Fair value of investment properties is determined using inputs that are not based on observable market data, consequently the asset is categorized as Level 3. |
Intangible assets
Intangible assets | 6 Months Ended |
Dec. 31, 2022 | |
Intangible assets. | |
Intangible assets | 17 Intangible assets Other intangible Goodwill Registrations assets Total £’000 £’000 £’000 £’000 At 1 July 2022 Cost 421,453 779,196 18,817 1,219,466 Accumulated amortization — (462,985) (13,203) (476,188) Net book amount 421,453 316,211 5,614 743,278 Six months ended 31 December 2022 Opening net book amount 421,453 316,211 5,614 743,278 Additions — 221,472 699 222,171 Disposals — (8,810) — (8,810) Amortization charge — (83,736) (1,374) (85,110) Closing net book amount 421,453 445,137 4,939 871,529 At 31 December 2022 Cost 421,453 968,617 19,516 1,409,586 Accumulated amortization — (523,480) (14,577) (538,057) Net book amount 421,453 445,137 4,939 871,529 At 1 July 2021 Cost 421,453 861,210 16,644 1,299,307 Accumulated amortization — (533,223) (11,617) (544,840) Net book amount 421,453 327,987 5,027 754,467 Six months ended 31 December 2021 Opening net book amount 421,453 327,987 5,027 754,467 Additions — 144,302 1,544 145,846 Disposals — (14,274) — (14,274) Amortization charge — (72,510) (1,277) (73,787) Closing net book amount 421,453 385,505 5,294 812,252 At 31 December 2021 Cost 421,453 979,655 17,291 1,418,399 Accumulated amortization — (594,150) (11,997) (606,147) Net book amount 421,453 385,505 5,294 812,252 Impairment tests for goodwill Goodwill is not subject to amortization and is tested annually for impairment (normally at the end of the third fiscal quarter) or more frequently if events or changes in circumstances indicate a potential impairment. Management has considered the carrying amount of goodwill as of 31 December 2022 and concluded that, as there are no indicators of impairment, a detailed impairment test is not required. Having assessed the future anticipated cash flows, management believes that any reasonably possible changes in key assumptions would not result in an impairment of goodwill. 17 Intangible assets (continued) Significant estimates - fair value of registrations The costs associated with the acquisition of players’ and key football management staff registrations include an estimate of the fair value of any contingent consideration. The estimate of the fair value of the contingent consideration payable requires management to assess the likelihood of specific performance conditions being met which would trigger the payment of the contingent consideration. This assessment is carried out on an individual basis. The maximum additional amount that could be payable as of 31 December 2022 is disclosed in Note 31.1. The estimate over the probability of contingent consideration payable could impact the net book value of registrations and amortization recognized in the statement of profit or loss. Other intangible assets Other intangible assets include internally generated assets whose cost and accumulated amortization as of 31 December 2022 was £2,103,000 and £ 2,101,000 respectively (31 December 2021: £2,103,000 and £ 2,067,000 respectively). |
Deferred tax
Deferred tax | 6 Months Ended |
Dec. 31, 2022 | |
Deferred tax | |
Deferred tax | 18 Deferred tax Deferred tax assets and liabilities are offset where the Group has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after allowable offset) for financial reporting purposes: 31 December 30 June 31 December 2022 2022 2021 £’000 £’000 £’000 Net deferred tax liability (2,413) (7,402) (30,422) The movements in the net deferred tax liability are as follows: 31 December 30 June 31 December 2022 2022 2021 £’000 £’000 £’000 At the beginning of the period (7,402) (35,546) (35,546) Credited to the statement of profit or loss (Note 11) 5,408 29,431 5,415 Credited/(expensed) to other comprehensive income (Note 11) (419) (1,287) (291) At the end of the period (2,413) (7,402) (30,422) Group profits are subject to both UK and US corporate tax. The current US federal corporate income tax rate is 21% compared to the substantively enacted UK corporation tax rate of 25%. As the UK corporation tax rate is higher than the US federal corporate income tax rate, it is forecast that all future US cash tax will be sheltered by foreign tax credits derived from UK tax paid. A potential US deferred tax asset at the period end has therefore not been recognised as it is not forecast to give rise to a future economic benefit. Future increases in the US federal corporate income tax rate could result in the recognition of the US deferred tax asset. Significant estimates – recognition of deferred tax assets Deferred tax assets are recognized only to the extent that it is probable that the associated deductions will be available for use against future profits and that there will be sufficient future taxable profit available against which the temporary differences can be utilized, provided the asset can be reliably quantified. In estimating future taxable profit, management use “base case” approved forecasts which incorporate a number of assumptions, including a prudent level of future uncontracted revenue in the forecast period. In arriving at a judgment in relation to the recognition of deferred tax assets, management considers the regulations applicable to tax, advice on their interpretation and potential future business planning. Future taxable income may be higher or lower than estimates made when determining whether it is appropriate to record a tax asset and the amount to be recorded. Furthermore, changes in the legislative framework or applicable tax case law may result in management reassessing the recognition of deferred tax assets in future periods. |
Inventories
Inventories | 6 Months Ended |
Dec. 31, 2022 | |
Inventories | |
Inventories | 19 Inventories 31 December 30 June 31 December 2022 2022 2021 £’000 £’000 £’000 Finished goods 3,272 2,200 2,876 The cost of inventories recognized as an expense and included in operating expenses for the six months ended 31 December 2022 amounted to £7,042,000 (year ended 30 June 2022: £11,345,000; six months ended 31 December 2021: £7,263,000). |
Trade receivables
Trade receivables | 6 Months Ended |
Dec. 31, 2022 | |
Trade receivables. | |
Trade receivables | 20 Trade receivables 31 December 30 June 31 December 2022 2022 2021 £’000 £’000 £’000 Trade receivables 150,863 91,207 103,082 Less: provision for impairment of trade receivables (13,230) (12,240) (7,995) Net trade receivables 137,633 78,967 95,087 Less: non-current portion Trade receivables 21,224 29,757 41,024 Current trade receivables 116,409 49,210 54,063 Net trade receivables include transfer fees receivable from other football clubs of £55,311,000 (30 June 2022: £50,418,000; 31 December 2021: £61,256,000) of which £21,224,000 (30 June 2022: £29,757,000; 31 December 2021: £41,024,000) is receivable after more than one year. Net trade receivables also include £35,087,000 (30 June 2022: £19,903,000; 31 December 2021: £21,497,000) of deferred revenue that is contractually payable to the Group, but recorded in advance of the earnings process, with corresponding amounts recorded as contract liabilities - deferred revenue. Gross contractual trade receivables pre discounting as at 31 December 2022 were £139,199,000 (30 June 2022: £80,150,000; 31 December 2021: £96,805,000). |
Derivative financial instrument
Derivative financial instruments | 6 Months Ended |
Dec. 31, 2022 | |
Derivative financial instruments. | |
Derivative financial instruments | 21 Derivative financial instruments 31 December 2022 30 June 2022 31 December 2021 Assets Liabilities Assets Liabilities Assets Liabilities £’000 £’000 £’000 £’000 £’000 £’000 Used for hedging: Interest rate swaps 4,901 — 2,458 — — (3,045) Forward foreign exchange contracts — — — — — (76) At fair value through profit or loss: Embedded foreign exchange derivatives 22,561 — 20,286 — 5,580 (194) Forward foreign exchange contracts 2,603 (519) 315 (81) — (1,452) 30,065 (519) 23,059 (81) 5,580 (4,767) Less non-current portion: Used for hedging: Interest rate swaps 4,901 — 2,458 — — (3,045) At fair value through profit or loss: Embedded foreign exchange derivatives 15,938 — 13,786 — — (96) Forward foreign exchange contracts 1,350 (519) 218 (49) 4,434 (767) Non-current derivative financial instruments 22,189 (519) 16,462 (49) 4,434 (3,908) Current derivative financial instruments 7,876 — 6,597 (32) 1,146 (859) 21 Derivative financial instruments (continued) Fair value hierarchy Derivative financial instruments are carried at fair value. The different levels used in measuring fair value have been defined in accounting standards as follows: ● Level 1 – the fair value of financial instruments traded in active markets is based on quoted market prices at the end of the reporting period. ● Level 2 – the fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximize the use of observable market data and as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in Level 2. ● Level 3 – if one or more of the significant inputs is not based on observable market data, the instrument is included in Level 3. All of the financial instruments detailed above are included in Level 2. |
Cash and cash equivalents
Cash and cash equivalents | 6 Months Ended |
Dec. 31, 2022 | |
Cash and cash equivalents | |
Cash and cash equivalents | 22 Cash and cash equivalents 31 December 30 June 31 December 2022 2022 2021 £’000 £’000 £’000 Cash at bank and in hand 31,045 121,223 87,434 Cash and cash equivalents for the purposes of the interim consolidated statement of cash flows are as above. |
Share capital
Share capital | 6 Months Ended |
Dec. 31, 2022 | |
Share capital. | |
Share capital | 23 Share capital Number of shares Ordinary shares (thousands) £’000 At 1 July 2021 164,677 53 Employee share-based compensation awards – issue of shares 9 — At 31 December 2021 164,686 53 Employee share-based compensation awards – issue of shares 59 — At 30 June 2022 164,745 53 Employee share-based compensation awards – issue of shares — — At 31 December 2022 164,745 53 The Company has two classes of ordinary shares outstanding: Class A ordinary shares and Class B ordinary shares, each with a par value of $0.0005 per share two-thirds As of 31 December 2022, the Company’s issued share capital comprised 54,537,360 Class A ordinary shares and 110,207,613 Class B ordinary shares. 23 Share capital (continued) 1,682,896 Class A ordinary shares are currently held in treasury. Distributable reserves have been reduced by £21,305,000, being the consideration paid for these shares. See Note 24. |
Treasury shares
Treasury shares | 6 Months Ended |
Dec. 31, 2022 | |
Treasury shares. | |
Treasury shares | 24 Treasury shares Number of shares (thousands) £’000 At 1 July 2021, 31 December 2021, 30 June 2022 and 31 December 2022 1,683 21,305 |
Trade and other payables
Trade and other payables | 6 Months Ended |
Dec. 31, 2022 | |
Trade and other payables | |
Trade and other payables | 25 Trade and other payables 31 December 30 June 31 December 2022 2022 2021 £’000 £’000 £’000 Trade payables 290,239 192,863 205,528 Other payables 13,420 18,982 20,259 Accrued expenses 66,079 89,016 69,384 Social security and other taxes 18,529 22,073 14,728 388,267 322,934 309,899 Less: non-current portion Trade payables 159,719 101,301 101,221 Other payables 776 1,046 1,332 Non-current trade and other payables 160,495 102,347 102,553 Current trade and other payables 227,772 220,587 207,346 Trade payables include transfer fees and other associated costs in relation to the acquisition of players’ registrations of £280,370,000 (30 June 2022: £181,545,000; 31 December 2021: £188,765,000) of which £159,719,000 (30 June 2022: £101,301,000; 31 December 2021: £101,221,000) is due after more than one year. Of the amount due after more than one year, £79,385,000 (30 June 2022: £54,732,000; 31 December 2021: £54,120,000) is expected to be paid between 1 and 2 years, £79,855,000 (30 June 2022: £46,569,000; 31 December 2021: £47,101,000) is expected to be paid between 2 and 5 years, and the balance of £479,000 (30 June 2022: £nil; 31 December 2021: £nil) is expected to be paid after 5 years. Gross contractual trade payables pre discounting as at 31 December 2022 were £307,913,000 (30 June 2022: £196,396,000; 31 December 2021: £210,747,000). The gross contractual value of other payables is not materially different to their carrying amount. |
Borrowings
Borrowings | 6 Months Ended |
Dec. 31, 2022 | |
Borrowings | |
Borrowings | 26 Borrowings 31 December 30 June 31 December 2022 2022 2021 £’000 £’000 £’000 Senior secured notes 350,626 347,173 312,318 Secured term loan facility 185,028 183,192 164,734 Revolving credit facilities 200,000 100,000 100,000 Accrued interest on senior secured notes and revolving credit facilities 6,246 5,757 5,185 741,900 636,122 582,237 Less: non-current portion Senior secured notes 350,626 347,173 312,318 Secured term loan facility 185,028 183,192 164,734 Non-current borrowings 535,654 530,365 477,052 Current borrowings 206,246 105,757 105,185 26 Borrowings (continued) The senior secured notes of £350,626,000 (30 June 2022: £347,173,000; 31 December 2021: £312,318,000) is stated net of unamortized issue costs amounting to £2,354,000 (30 June 2022: £2,591,000; 31 December 2021: £2,823,000). The outstanding principal amount of the senior secured notes is $425,000,000 (30 June 2022: $425,000,000; 31 December 2021: $425,000,000). The senior secured notes have a fixed coupon rate of 3.79% per annum and interest is paid semi-annually. The senior secured notes mature on 25 June 2027. The senior secured notes were issued by our wholly owned subsidiary, Manchester United Football Club Limited, and are guaranteed by Red Football Limited, Red Football Junior Limited, Manchester United Limited and MU Finance Limited and are secured against substantially all of the assets of those entities and Manchester United Football Club Limited. These entities are wholly owned subsidiaries of Manchester United plc. The secured term loan facility of £185,028,000 (30 June 2022: £183,192,000; 31 December 2021: £164,734,000) is stated net of unamortized issue costs amounting to £1,850,000 (30 June 2022: £1,979,000; 31 December 2021: £2,107,000). The outstanding principal amount of the secured term loan facility is $225,000,000 (30 June 2022: $225,000,000; 31 December 2021: $225,000,000). The secured term loan facility attracts interest of US dollar LIBOR plus an applicable margin of between 1.25% and 1.75% per annum and interest is paid monthly. The remaining balance of the secured term loan facility is repayable on 6 August 2029, although the Group has the option to repay the secured term loan facility at any time before then. The secured term loan facility was provided to our wholly owned subsidiary, Manchester United Football Club Limited, and is guaranteed by Red Football Limited, Red Football Junior Limited, Manchester United Limited, MU Finance Limited and Manchester United Football Club Limited and is secured against substantially all of the assets of each of those entities. These entities are wholly owned subsidiaries of Manchester United plc. The Group also has £200,000,000 (30 June 2022: £100,000,000; 31 December 2021: £100,000,000) in outstanding loans and £100,000,000 (30 June 2022: £200,000,000; 31 December 2021: £100,000,000) in borrowing capacity under our revolving facilities. £150,000,000 of the facilities terminate on 4 April 2025 and the remainder terminates on 25 June 2027. The Group has complied with all covenants under its revolving facilities, the secured term loan facility and the note purchase agreement governing the senior secured notes during the 2022 and 2021 reporting period. |
Provisions
Provisions | 6 Months Ended |
Dec. 31, 2022 | |
Provisions | |
Provisions | 27 Provisions Other (1) Tax (2) Total £’000 £’000 £’000 At 1 July 2021 722 4,080 4,802 Charged to profit or loss: Additional provisions recognized 129 428 557 At 31 December 2021 851 4,508 5,359 Charged to profit or loss: Reassessment of provisions 292 1,259 1,551 Additional provisions recognized — 5,734 5,734 At 30 June 2022 1,143 11,501 12,644 Charged/(credited) to profit or loss: Reassessment of provisions 97 (29) 68 Additional provisions recognised — 291 291 At 31 December 2022 1,240 11,763 13,003 Less: non-current portion Provisions (89) — (89) Current provisions 1,151 11,763 12,914 (1) Other provision includes, amongst other items, make good provisions as the Group is required to restore the leased premises of its office spaces to their original condition at the end of the respective lease terms. A provision has been recognized based upon the estimated expenditure required to remove any leasehold improvements. The remaining term on such leased properties is between 3 months and 15 months. (2) Provision in respect of player related tax matters. The timing of cash outflows is by its nature uncertain but it is management’s best estimate that these will be made within the next 12 months. |
Cash (used in)_generated from o
Cash (used in)/generated from operations | 6 Months Ended |
Dec. 31, 2022 | |
Cash (used in)/generated from operations | |
Cash (used in)/generated from operations | 28 Cash (used in)/generated from operations Three months ended Six months ended 31 December 31 December 2022 2021 2022 2021 £’000 £’000 £’000 £’000 Profit/(loss) before income tax 9,255 (2,067) (25,115) (21,887) Adjustments for: Depreciation 3,609 3,579 7,087 7,270 Amortization 44,971 38,653 85,110 73,787 Loss/(profit) on disposal of intangible assets 2,588 318 (14,020) (17,158) Net finance (income)/costs (12,115) 7,472 18,873 17,126 Non-cash employee benefit expense - equity-settled share-based payments 626 433 1,155 968 Foreign exchange losses/(gains) on operating activities 5,140 (398) 3,967 (302) Reclassified from hedging reserve (367) 90 (530) 30 Changes in working capital: Inventories 480 (105) (1,072) (796) Prepayments 4,638 4,776 (10,928) (13,751) Contract assets – accrued revenue (7,366) (34,471) (17,266) (29,284) Trade receivables (64,070) (5,832) (48,087) (5,541) Other receivables (497) 151 (857) (650) Contract liabilities – deferred revenue (23,898) (25,963) (14,716) 39,615 Trade and other payables (19,821) (12,532) (36,974) (3,864) Provisions 194 329 359 557 Cash (used in)/generated from operations (56,633) (25,567) (53,014) 46,120 |
Pension arrangements
Pension arrangements | 6 Months Ended |
Dec. 31, 2022 | |
Pension arrangements | |
Pension arrangements | 29 Pension arrangements The Group participates in the Football League Pension and Life Assurance Scheme (‘the Scheme’). The Scheme is a funded multi-employer defined benefit scheme where members may have periods of service attributable to several participating employers. The Group is unable to identify its share of the assets and liabilities of the Scheme and therefore accounts for its contributions as if they were paid to a defined contribution scheme. The Group has received confirmation that the assets and liabilities of the Scheme cannot be split between the participating employers. The Group is advised only of the additional contributions it is required to pay to make good the deficit. These contributions could increase in the future if one or more of the participating employers exits the Scheme. The last triennial actuarial valuation of the Scheme was carried out at 31 August 2020 where the total deficit on the ongoing valuation basis was £27.5 million. The accrual of benefits ceased within the Scheme on 31 August 1999, therefore there are no contributions relating to current accrual. The Group pays monthly contributions based on a notional split of the total expenses and deficit contributions of the Scheme. The Group currently pays total contributions of £555,000 per annum and this amount will increase by 5% per annum from September 2023. Based on the existing actuarial valuation assumptions, this will be sufficient to pay off the deficit by 30 April 2025. As of 31 December 2022, the present value of the Group’s outstanding contributions (i.e. its future liability) is £1,332,000 . This amounts to £555,000 (30 June 2022: £556,000 ; 31 December 2021: £533,000 ) due within one year and £777,000 (30 June 2022: £1,046,000 ; 31 December 2021: £1,332,000 ) due after more than one year and is included within other payables. Contributions are also made to defined contribution pension arrangements and are charged to the statement of profit or loss in the period in which they become payable. |
Financial risk management
Financial risk management | 6 Months Ended |
Dec. 31, 2022 | |
Financial risk management | |
Financial risk management | 30 Financial risk management 30.1 Financial risk factors The Group’s activities expose it to a variety of financial risks: market risk (including foreign exchange risk, and cash flow and fair value interest rate risk), credit risk, and liquidity risk. The interim consolidated financial statements do not include all financial risk management information and disclosures required in the annual financial statements, they should be read in conjunction with the audited consolidated financial statements and notes thereto for the year ended 30 June 2022, as filed with the Securities and Exchange Commission on 23 September 2022, contained within the Company’s Annual Report on Form 20-F. There have been no changes in risk management since the previous financial year end or in any risk management policies. 30.2 Hedging activities The Group uses derivative financial instruments to hedge certain exposures and has designated certain derivatives as hedges of cash flows (cash flow hedge). The Group hedges the foreign exchange risk on contracted future US dollar revenues whenever possible using the Group’s US dollar net borrowings as the hedging instrument. The foreign exchange gains or losses arising on re-translation of the Group’s US dollar net borrowings used in the hedge are initially recognized in other comprehensive income, rather than being recognized in the statement of profit or loss immediately. Amounts previously recognized in other comprehensive income and accumulated in the hedging reserve are subsequently reclassified into the statement of profit or loss in the same accounting period, and within the same statement of profit or loss line (i.e. commercial revenue), as the underlying future US dollar revenues, which given the varying lengths of the commercial revenue contracts will be between January 2023 to May 2027. The foreign exchange gains or losses arising on re-translation of the Group’s unhedged US dollar borrowings are recognized in the statement of profit or loss immediately (within net finance costs). The table below details the net borrowings being hedged at the balance sheet date: 31 December 30 June 31 December 2022 2022 2021 $’000 $’000 $’000 USD borrowings 650,000 650,000 650,000 Hedged USD cash (8,900) (37,000) (13,023) Net USD debt 641,100 613,000 636,977 Hedged future USD revenues (1) (50,780) (22,800) (34,124) Unhedged USD borrowings 590,320 590,200 602,853 Closing USD exchange rate ($: £) 1.2040 1.2151 1.3486 (1) 30 Financial risk management (continued) 30.2 Hedging activities (continued) The Group hedges its cash flow interest rate risk where considered appropriate using interest rate swaps. Such interest rate swaps have the economic effect of converting a portion of variable rate borrowings from floating rates to fixed rates. The effective portion of changes in the fair value of the interest rate swap is initially recognized in other comprehensive income, rather than being recognized in the statement of profit or loss immediately. Amounts previously recognized in other comprehensive income and accumulated in the hedging reserve are subsequently reclassified into the statement of profit or loss in the same accounting period, and within the same statement of profit or loss line (i.e. net finance costs), as the underlying interest payments, which given the term of the swap will be between January 2023 to June 2024. The following table details the interest rate swaps at the reporting date that are used to hedge borrowings: 31 December 30 June 31 December 2022 2022 2021 Principal value of loan outstanding ($’000) 150,000 150,000 150,000 Rate received 1 month $ LIBOR 1 month $ LIBOR 1 month $ LIBOR Rate paid Fixed 2.032 % Fixed 2.032 % Fixed 2.032 % Expiry date 30 June 2024 30 June 2024 30 June 2024 As of 31 December 2022, the fair value of the above interest rate swap was an asset of £4,901,000 (30 June 2022: asset of £2,458,000; 31 December 2021: liability of £3,045,000). The Group also seeks to hedge the majority of the foreign exchange risk on revenue arising as a result of participation in UEFA club competitions, either by using contracted future foreign exchange expenses (including player transfer fee commitments) or by placing forward foreign exchange contracts, at the point at which it becomes reasonably certain that it will receive the revenue. The Group also seeks to hedge the foreign exchange risk on other contracted future foreign exchange expenses using available foreign exchange cash balances and forward foreign exchange contracts. |
Contingent liabilities and cont
Contingent liabilities and contingent assets | 6 Months Ended |
Dec. 31, 2022 | |
Contingent liabilities and contingent assets | |
Contingent liabilities and contingent assets | 31 Contingent liabilities and contingent assets 31.1 Contingent liabilities The Group had contingent liabilities at 31 December 2022 in respect of: (i) Transfer fees Under the terms of certain contracts with other football clubs and agents in respect of player transfers, additional amounts, in excess of the amounts included in the cost of registrations, would be payable by the Group if certain substantive performance conditions are met. These excess amounts are only recognized within the cost of registrations when the Group considers that it is probable that the condition related to the payment will be achieved. The maximum additional amounts that could be payable is £141,097,000 (30 June 2022: £112,372,000; 31 December 2021: £122,604,000). No material adjustment was required to the amounts included in the cost of registrations during the period (2021: no material adjustments) and consequently there was no material impact on the amortization of registration charges in the statement of profit or loss (2021: no material impact). As of 31 December 2022, the potential amount payable by type of condition and category of player was: First team squad Other Total Type of condition £’000 £’000 £’000 MUFC appearances/team success/new contract 83,369 13,222 96,591 International appearances 10,444 1,082 11,526 Awards 32,980 — 32,980 126,793 14,304 141,097 31 Contingent liabilities and contingent assets (continued) 31.1 Contingent liabilities (continued) (ii) Tax matters We are currently in active discussions with UK tax authorities over a number of tax areas in relation to arrangements with players and players’ representatives. It is possible that in the future, as a result of discussions between the Group and UK tax authorities, as well as discussions UK tax authorities are holding with other stakeholders within the football industry, interpretations of applicable rules will be challenged, which could result in liabilities in relation to these matters. The information usually required by IAS 37 ‘Provisions, Contingent Liabilities and Contingent Assets’, is not disclosed on the grounds that it is not practicable to be disclosed. 31.2 Contingent assets (i) Transfer fees Under the terms of certain contracts with other football clubs in respect of player transfers, additional amounts would be payable to the Group if certain specific performance conditions are met. In accordance with the recognition criteria for contingent assets, such amounts are only disclosed by the Group when probable and recognized when virtually certain. As of 31 December 2022, the amount of such receipt considered to be probable was £nil (30 June 2022: £nil; 31 December 2021: £nil). |
Commitments
Commitments | 6 Months Ended |
Dec. 31, 2022 | |
Commitments | |
Commitments | 32 Commitments 32.1 Capital commitments As at 31 December 2022, the Group had contracted capital expenditure relating to property, plant and equipment amounting to £2,090,000 (30 June 2022: £1,185,000; 31 December 2021: £1,437,000) and to other intangible assets amounting to £192,000 (30 June 2022: £1,476,000; 31 December 2021: £472,000). These amounts are not recognized as liabilities. |
Events occurring after the repo
Events occurring after the reporting period | 6 Months Ended |
Dec. 31, 2022 | |
Events occurring after the reporting period | |
Events occurring after the reporting period | 33 Events occurring after the reporting period 33.1 Registrations Subsequent to 31 December 2022, solidarity contributions, training compensation, sell-on fees and contingent consideration totalling £13,000 , became receivable in respect of previous playing registration disposals. There have been no disposals of playing registrations since 31 December 2022. Subsequent to 31 December 2022 the playing registrations of certain players were acquired or extended for a total consideration, including associated costs, of £10,384,000 . Also subsequent to 31 December 2022, sell-on fees and contingent consideration totalling £917,000 , became payable in respect of previous playing registration acquisitions. |
Related party transactions
Related party transactions | 6 Months Ended |
Dec. 31, 2022 | |
Related party transactions | |
Related party transactions | 34 Related party transactions As of 31 December 2022, trusts and other entities controlled by six lineal descendants of Mr. Malcolm Glazer collectively own 4.37% of our issued and outstanding Class A ordinary shares and all of our issued and outstanding Class B ordinary shares, representing 95.62% of the voting power of our outstanding capital stock. |
Subsidiaries
Subsidiaries | 6 Months Ended |
Dec. 31, 2022 | |
Subsidiaries | |
Subsidiaries | 35 Subsidiaries The following companies are the subsidiary undertakings of the Company as of 31 December 2022: % of ownership Subsidiaries Principal activity interest Red Football Finance Limited* Dormant company 100 Red Football Holdings Limited* Holding company 100 Red Football Shareholder Limited Holding company 100 Red Football Joint Venture Limited Holding company 100 Red Football Limited Holding company 100 Red Football Junior Limited Holding company 100 Manchester United Limited Holding company 100 Alderley Urban Investments Limited Property investment 100 Manchester United Football Club Limited Professional football club 100 Manchester United Women’s Football Club Limited Professional football club 100 Manchester United Interactive Limited Dormant company 100 MU 099 Limited Dormant company 100 MU Commercial Holdings Limited Non-trading company 100 MU Commercial Holdings Junior Limited Non-trading company 100 MU Finance Limited Non-trading company 100 MU RAML Limited Retail and licensing company 100 MUTV Limited Media company 100 RAML USA LLC Dormant company 100 * All of the above are incorporated and operate in England and Wales, with the exception of Red Football Finance Limited which is incorporated and operates in the Cayman Islands and RAML USA LLC which is incorporated in the United States. |
Accounting policies (Policies)
Accounting policies (Policies) | 6 Months Ended |
Dec. 31, 2022 | |
Accounting policies | |
Taxes on income | Taxes on income in the interim periods are accrued using the tax rate that would be applicable to expected total annual earnings. |
New and amended standards and interpretations adopted by the Group | New and amended standards and interpretations adopted by the Group No new or amended IFRS standards or interpretations, effective for the first time for the financial year beginning on 1 July 2022, have had a material impact on the interim consolidated financial statements of the Group. |
New and amended standards and interpretations issued but not yet adopted | New and amended standards and interpretations issued but not yet adopted There are no IFRS or IFRS IC interpretations that are not yet effective that would be expected to have a material impact on the Group in the future reporting periods or on foreseeable future transactions. |
Effect of IBOR reform | 3 Accounting policies (continued) Effect of IBOR reform For the year ended 30 June 2021, we adopted the Phase 2 amendments to IFRS 9, “Financial Instruments” for the first time. On 10 December 2021 and 13 December 2021, the Group amended and restated its revolving facility agreements with Bank of America and Santander plc respectively, to provide for an alternate method of calculating our interest rates following the cessation of GBP LIBOR and the 1-week and 2-month USD LIBOR rates. Interest is now calculated based on the Sterling Overnight Index Average (SONIA) plus a credit adjustment spread. Our secured term loan facility of $225.0 million remains subject to USD LIBOR which is expected to be phased out completely by 30 June 2023. Therefore, in due course, the Group will need to re-negotiate terms with its lender and amend the terms of the related interest swap. Such amendments are expected to be achieved without material financial impact to the Group. The following table contains details of all financial instruments held at 31 December 2022 which reference USD LIBOR and have not yet transitioned to an alternative interest rate benchmark, such that phase 1 reliefs continue to be applied to the hedge relationship as there remains uncertainty arising from IBOR reform: Carrying value as at 31 December 2022 Assets Liabilities £000 £000 Borrowings (measured at amortised cost) — (185,028) Derivative financial instruments 4,901 — Total 4,901 (185,028) The Group has adopted the following hedge accounting reliefs provided by Phase 2 of the amendments: (i) Hedge designation – When the Phase 1 amendments cease to apply, the group will amend its cash flow hedge designation to reflect changes which are required by IBOR reform, but only to make one or more of these changes: ● Designating an alternative benchmark rate (contractually or non-contractually specified) as a hedged risk; ● Amending the description of the hedged item, including the designated portion of the cash flows being hedged; or ● Amending the description of the hedging instrument. The Group will update its hedge documentation to reflect these changes at the end of the reporting period in which the changes are made. The amendments to hedge documentation do not require the Group to discontinue the cash flow hedge relationship. (ii) Risk components – The Group is permitted to designate an alternative benchmark rate as a non-contractually specified risk component, even if it is not separately identifiable at the date when it is designated, provided that the Group reasonably expects that it will meet the requirements within 24 months of the first designation and the risk component is reliably measurable. The Group has not designated any alternative benchmark rates as risk components in any hedge relationships during the period. |
Accounting policies (Tables)
Accounting policies (Tables) | 6 Months Ended |
Dec. 31, 2022 | |
Accounting policies | |
Schedule of all financial instruments held at 31 December 2022 which reference USD LIBOR and have not yet transitioned to an alternative interest rate benchmark | Carrying value as at 31 December 2022 Assets Liabilities £000 £000 Borrowings (measured at amortised cost) — (185,028) Derivative financial instruments 4,901 — Total 4,901 (185,028) |
Revenue from contracts with c_2
Revenue from contracts with customers (Tables) | 6 Months Ended |
Dec. 31, 2022 | |
Revenue from contracts with customers | |
Schedule of revenue derived from principal activity | Three months ended Six months ended 31 December 31 December 2022 2021 2022 2021 £’000 £’000 £’000 £’000 Sponsorship 50,423 35,215 108,234 71,484 Retail, merchandising, apparel & product licensing 28,266 29,193 57,843 57,289 Commercial 78,689 64,408 166,077 128,773 Domestic competitions 44,399 46,383 72,026 69,262 European competitions 12,895 38,266 18,582 56,813 Other 1,495 1,764 3,184 3,680 Broadcasting 58,789 86,413 93,792 129,755 Matchday 29,890 34,619 51,153 53,373 167,368 185,440 311,022 311,901 |
Schedule of assets and liabilities related to contracts with customers | Current contract assets – accrued revenue £’000 At 1 July 2021 40,544 Recognized in revenue during the period 66,055 Cash received/amounts invoiced during the period (36,771) At 31 December 2021 69,828 Recognized in revenue during the period 33,567 Cash received/amounts invoiced during the period (67,156) At 30 June 2022 36,239 Recognized in revenue during the period 64,230 Cash received/amounts invoiced during the period (46,964) At 31 December 2022 53,505 Current Non-current contract contract Total contract liabilities – liabilities – liabilities – deferred deferred deferred revenue revenue revenue £’000 £’000 £’000 At 1 July 2021 (117,984) (22,942) (140,926) Recognized in revenue during the period 75,882 — 75,882 Cash received/amounts invoiced during the period (115,497) — (115,497) Reclassified to current during the period 1,668 (1,668) — At 31 December 2021 (155,931) (24,610) (180,541) Recognized in revenue during the period 31,072 — 31,072 Cash received/amounts invoiced during the period (33,075) — (33,075) Reclassified to current during the period (7,913) 7,913 — At 30 June 2022 (165,847) (16,697) (182,544) Recognized in revenue during the period 132,606 — 132,606 Cash received/amounts invoiced during the period (117,890) — (117,890) Reclassified to current during the period (9,423) 9,423 — At 31 December 2022 (160,554) (7,274) (167,828) |
Operating expenses (Tables)
Operating expenses (Tables) | 6 Months Ended |
Dec. 31, 2022 | |
Operating expenses | |
Schedule of operating expenses | Three months ended Six months ended 31 December 31 December 2022 2021 2022 2021 £’000 £’000 £’000 £’000 Employee benefit expenses (77,310) (97,745) (159,566) (186,250) Depreciation – property, plant and equipment (Note 14) (2,953) (3,066) (5,927) (6,259) Depreciation – right-of-use assets (Note 15) (586) (443) (1,020) (871) Depreciation – investment property (Note 16) (70) (70) (140) (140) Amortization (Note 17) (44,971) (38,653) (85,110) (73,787) Sponsorship, other commercial and broadcasting costs (4,353) (4,453) (15,065) (9,994) External Matchday costs (7,703) (6,777) (13,659) (12,438) Property costs (5,090) (2,950) (9,518) (5,246) Other operating expenses (24,604) (15,568) (41,279) (28,843) Exceptional items (Note 8) — (9,992) — (9,992) (167,640) (179,717) (331,284) (333,820) |
Exceptional items (Tables)
Exceptional items (Tables) | 6 Months Ended |
Dec. 31, 2022 | |
Exceptional items | |
Schedule of exceptional items | Three months ended Six months ended 31 December 31 December 2022 2021 2022 2021 £’000 £’000 £’000 £’000 Compensation paid for loss of office — (9,127) — (9,127) Football League pension scheme deficit (Note 29) — (865) — (865) — (9,992) — (9,992) |
(Loss)_profit on disposal of _2
(Loss)/profit on disposal of intangible assets (Tables) | 6 Months Ended |
Dec. 31, 2022 | |
(Loss)/profit on disposal of intangible assets | |
Schedule of (loss)/profit on disposal of intangible assets | Three months ended Six months ended 31 December 31 December 2022 2021 2022 2021 £’000 £’000 £’000 £’000 (Loss)/profit on disposal of registrations (2,588) (660) 14,020 16,658 Player loan income — 342 — 500 (2,588) (318) 14,020 17,158 |
Net finance income_(costs) (Tab
Net finance income/(costs) (Tables) | 6 Months Ended |
Dec. 31, 2022 | |
Net finance income/(costs) | |
Schedule of net finance income/(costs) | Three months ended Six months ended 31 December 31 December 2022 2021 2022 2021 £’000 £’000 £’000 £’000 Interest payable on bank loans and overdrafts (393) (430) (1,206) (945) Interest payable on secured term loan facility, senior secured notes and revolving facilities (7,552) (4,678) (13,762) (9,260) Interest payable on lease liabilities (Note 15) (41) (25) (64) (50) Amortization of issue costs on secured term loan facility and senior secured notes (188) (183) (365) (354) Foreign exchange losses on retranslation of unhedged US dollar borrowings (1) — (591) (2,703) (10,560) Unwinding of discount relating to registrations (2,305) (633) (3,477) (1,212) Interest on provisions (78) — (138) — Hedge ineffectiveness on cash flow hedges — (87) (241) (210) Fair value movement on derivative financial instruments: Embedded foreign exchange derivatives (15,720) (846) — — Total finance costs (3) (26,277) (7,473) (21,956) (22,591) Interest receivable on short-term bank deposits 61 1 191 3 Foreign exchange gains on retranslation of unhedged US dollar borrowings (2) 37,737 — — — Reclassified from hedging reserve — — — 326 Hedge ineffectiveness on cash flow hedges 594 — — — Fair value movement on derivative financial instruments: Embedded foreign exchange derivatives — — 2,892 5,136 Total finance income (3) 38,392 1 3,083 5,465 Net finance income/(costs) 12,115 (7,472) (18,873) (17,126) (1) (2) (3) |
Income tax (expense)_credit (Ta
Income tax (expense)/credit (Tables) | 6 Months Ended |
Dec. 31, 2022 | |
Income tax (expense)/credit | |
Schedule of income tax (expense)/credit | Three months ended Six months ended 31 December 31 December 2022 2021 2022 2021 £’000 £’000 £’000 £’000 Current tax Current tax on loss/profit for the period (67) (60) (136) (117) Foreign tax (341) (17) (367) (352) Total current tax expense (408) (77) (503) (469) Deferred tax Origination and reversal of temporary differences (2,541) 742 5,408 5,415 Total deferred tax credit (2,541) 742 5,408 5,415 Total income (expense)/credit (2,949) 665 4,905 4,946 |
Schedule of amounts relating to tax recognized directly in other comprehensive income | Three months ended Six months ended 31 December 31 December 2022 2021 2022 2021 £’000 £’000 £’000 £’000 Deferred tax (Note 18) (517) (350) (419) (291) Total income tax expense recognized in other comprehensive income (517) (350) (419) (291) |
Earnings_(loss) per share (Tabl
Earnings/(loss) per share (Tables) | 6 Months Ended |
Dec. 31, 2022 | |
Earnings/(loss) per share | |
Schedule of earnings/(loss) per share | Three months ended Six months ended 31 December 31 December 2022 2021 2022 2021 Profit/(loss) for the period (£’000) 6,306 (1,402) (20,210) (16,941) Basic earnings/(loss) per share (pence) 3.87 (0.86) (12.39) (10.39) Diluted earnings/(loss) per share (pence) (1) 3.85 (0.86) (12.39) (10.39) |
Schedule of weighted average number of shares | Three months ended Six months ended 31 December 31 December 2022 2021 2022 2021 Number Number Number Number ‘000 ‘000 ‘000 ‘000 Class A ordinary shares 52,013 53,962 52,013 49,466 Class B ordinary shares 112,732 110,724 112,732 115,216 Treasury shares (1,683) (1,683) (1,683) (1,683) Weighted average number of ordinary shares used as the denominator in calculating basic loss per share 163,062 163,003 163,062 162,999 Adjustment for calculation of diluted earnings per share assumed conversion into Class A ordinary shares (1) 543 — — — Weighted average number of ordinary shares and potential ordinary shares used as the denominator in calculating diluted loss per share (1) 163,605 163,003 163,062 162,999 (1) For the six months ended 31 December 2022 and the three and six months ended 31 December 2021, potential ordinary shares are anti-dilutive, as their inclusion in the diluted loss per share calculation would reduce the loss per share, and hence have been excluded. |
Property, plant and equipment (
Property, plant and equipment (Tables) | 6 Months Ended |
Dec. 31, 2022 | |
Property, plant and equipment. | |
Schedule of property, plant and equipment | Freehold Plant and Fixtures property machinery and fittings Total £’000 £’000 £’000 £’000 At 1 July 2022 Cost 281,377 39,562 75,394 396,333 Accumulated depreciation (63,261) (34,293) (56,118) (153,672) Net book amount 218,116 5,269 19,276 242,661 Six months ended 31 December 2022 Opening net book amount 218,116 5,269 19,276 242,661 Additions 1,884 1,167 3,649 6,700 Depreciation charge (1,703) (1,330) (2,894) (5,927) Closing net book amount 218,297 5,106 20,031 243,434 At 31 December 2022 Cost 283,261 40,729 79,043 403,033 Accumulated depreciation (64,964) (35,623) (59,012) (159,599) Net book amount 218,297 5,106 20,031 243,434 At 1 July 2021 Cost 278,987 38,309 73,528 390,824 Accumulated depreciation (59,867) (32,964) (50,934) (143,765) Net book amount 219,120 5,345 22,594 247,059 Six months ended 31 December 2021 Opening net book amount 219,120 5,345 22,594 247,059 Additions 2,142 989 1,914 5,045 Transfers — 232 (232) — Depreciation charge (1,695) (1,587) (2,977) (6,259) Closing net book amount 219,567 4,979 21,299 245,845 At 31 December 2021 Cost 281,129 39,559 75,181 395,869 Accumulated depreciation (61,562) (34,580) (53,882) (150,024) Net book amount 219,567 4,979 21,299 245,845 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Dec. 31, 2022 | |
Leases | |
Schedule of right-of-use assets | Right-of-use assets: 31 December 30 June 31 December 2022 2022 2021 £’000 £’000 £’000 Property 2,925 3,655 3,328 Plant and machinery 428 417 419 Total 3,353 4,072 3,747 |
Schedule of lease liabilities | Lease liabilities: 31 December 30 June 31 December 2022 2022 2021 £’000 £’000 £’000 Current 804 1,561 763 Non-current 2,475 2,869 2,994 Total lease liabilities 3,279 4,430 3,757 The following table provides an analysis of the movements in lease liabilities: £’000 At 1 July 2021 4,340 Cash flows (868) Additions 235 Accretion expense 50 At 31 December 2021 3,757 Cash flows (576) Additions 1,202 Accretion expense 47 At 30 June 2022 4,430 Cash flows (1,515) Additions 300 Accretion expense 64 At 31 December 2022 3,279 |
Schedule of amounts recognized in the consolidated statement of profit or loss | Three months ended Six months ended 31 December 31 December 2022 2021 2022 2021 £’000 £’000 £’000 £’000 Depreciation charge of right-of-use assets Property (361) (388) (730) (772) Plant and machinery (225) (55) (290) (99) (586) (443) (1,020) (871) Interest expense (included in finance costs) (41) (25) (64) (50) Expense relating to short-term leases (included in operating expenses) (99) (97) (194) (193) Expense relating to low value leases (included in operating expenses) — (10) — (21) |
Investment property (Tables)
Investment property (Tables) | 6 Months Ended |
Dec. 31, 2022 | |
Investment property | |
Schedule of investment property | Total £’000 At 1 July 2022 Cost 20,553 Accumulated depreciation and impairment (280) Net book amount 20,273 Six months ended 31 December 2022 Opening net book amount 20,273 Depreciation charge (140) Closing net book amount 20,133 At 31 December 2022 Cost 32,193 Accumulated depreciation and impairment (12,060) Net book amount 20,133 At 1 July 2021 Cost 32,193 Accumulated depreciation and impairment (11,640) Net book amount 20,553 Six months ended 31 December 2021 Opening net book amount 20,553 Depreciation charge (140) Closing net book amount 20,413 At 31 December 2021 Cost 32,193 Accumulated depreciation and impairment (11,780) Net book amount 20,413 |
Intangible assets (Tables)
Intangible assets (Tables) | 6 Months Ended |
Dec. 31, 2022 | |
Intangible assets. | |
Schedule of intangible assets | Other intangible Goodwill Registrations assets Total £’000 £’000 £’000 £’000 At 1 July 2022 Cost 421,453 779,196 18,817 1,219,466 Accumulated amortization — (462,985) (13,203) (476,188) Net book amount 421,453 316,211 5,614 743,278 Six months ended 31 December 2022 Opening net book amount 421,453 316,211 5,614 743,278 Additions — 221,472 699 222,171 Disposals — (8,810) — (8,810) Amortization charge — (83,736) (1,374) (85,110) Closing net book amount 421,453 445,137 4,939 871,529 At 31 December 2022 Cost 421,453 968,617 19,516 1,409,586 Accumulated amortization — (523,480) (14,577) (538,057) Net book amount 421,453 445,137 4,939 871,529 At 1 July 2021 Cost 421,453 861,210 16,644 1,299,307 Accumulated amortization — (533,223) (11,617) (544,840) Net book amount 421,453 327,987 5,027 754,467 Six months ended 31 December 2021 Opening net book amount 421,453 327,987 5,027 754,467 Additions — 144,302 1,544 145,846 Disposals — (14,274) — (14,274) Amortization charge — (72,510) (1,277) (73,787) Closing net book amount 421,453 385,505 5,294 812,252 At 31 December 2021 Cost 421,453 979,655 17,291 1,418,399 Accumulated amortization — (594,150) (11,997) (606,147) Net book amount 421,453 385,505 5,294 812,252 |
Deferred tax (Tables)
Deferred tax (Tables) | 6 Months Ended |
Dec. 31, 2022 | |
Deferred Tax | |
Schedule of deferred taxes | 31 December 30 June 31 December 2022 2022 2021 £’000 £’000 £’000 Net deferred tax liability (2,413) (7,402) (30,422) |
Schedule of movements in net deferred tax liability | 31 December 30 June 31 December 2022 2022 2021 £’000 £’000 £’000 At the beginning of the period (7,402) (35,546) (35,546) Credited to the statement of profit or loss (Note 11) 5,408 29,431 5,415 Credited/(expensed) to other comprehensive income (Note 11) (419) (1,287) (291) At the end of the period (2,413) (7,402) (30,422) |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Dec. 31, 2022 | |
Inventories | |
Schedule of inventories | 31 December 30 June 31 December 2022 2022 2021 £’000 £’000 £’000 Finished goods 3,272 2,200 2,876 |
Trade receivables (Tables)
Trade receivables (Tables) | 6 Months Ended |
Dec. 31, 2022 | |
Trade receivables. | |
Schedule of trade receivables | 31 December 30 June 31 December 2022 2022 2021 £’000 £’000 £’000 Trade receivables 150,863 91,207 103,082 Less: provision for impairment of trade receivables (13,230) (12,240) (7,995) Net trade receivables 137,633 78,967 95,087 Less: non-current portion Trade receivables 21,224 29,757 41,024 Current trade receivables 116,409 49,210 54,063 |
Derivative financial instrume_2
Derivative financial instruments (Tables) | 6 Months Ended |
Dec. 31, 2022 | |
Derivative financial instruments. | |
Schedule of derivative financial instruments | 31 December 2022 30 June 2022 31 December 2021 Assets Liabilities Assets Liabilities Assets Liabilities £’000 £’000 £’000 £’000 £’000 £’000 Used for hedging: Interest rate swaps 4,901 — 2,458 — — (3,045) Forward foreign exchange contracts — — — — — (76) At fair value through profit or loss: Embedded foreign exchange derivatives 22,561 — 20,286 — 5,580 (194) Forward foreign exchange contracts 2,603 (519) 315 (81) — (1,452) 30,065 (519) 23,059 (81) 5,580 (4,767) Less non-current portion: Used for hedging: Interest rate swaps 4,901 — 2,458 — — (3,045) At fair value through profit or loss: Embedded foreign exchange derivatives 15,938 — 13,786 — — (96) Forward foreign exchange contracts 1,350 (519) 218 (49) 4,434 (767) Non-current derivative financial instruments 22,189 (519) 16,462 (49) 4,434 (3,908) Current derivative financial instruments 7,876 — 6,597 (32) 1,146 (859) |
Cash and cash equivalents (Tabl
Cash and cash equivalents (Tables) | 6 Months Ended |
Dec. 31, 2022 | |
Cash and cash equivalents | |
Schedule of cash and cash equivalents | 31 December 30 June 31 December 2022 2022 2021 £’000 £’000 £’000 Cash at bank and in hand 31,045 121,223 87,434 |
Share capital (Tables)
Share capital (Tables) | 6 Months Ended |
Dec. 31, 2022 | |
Share capital. | |
Schedule of share capital | Number of shares Ordinary shares (thousands) £’000 At 1 July 2021 164,677 53 Employee share-based compensation awards – issue of shares 9 — At 31 December 2021 164,686 53 Employee share-based compensation awards – issue of shares 59 — At 30 June 2022 164,745 53 Employee share-based compensation awards – issue of shares — — At 31 December 2022 164,745 53 |
Treasury Shares (Tables)
Treasury Shares (Tables) | 6 Months Ended |
Dec. 31, 2022 | |
Treasury shares. | |
Schedule of treasury shares | Number of shares (thousands) £’000 At 1 July 2021, 31 December 2021, 30 June 2022 and 31 December 2022 1,683 21,305 |
Trade and other payables (Table
Trade and other payables (Tables) | 6 Months Ended |
Dec. 31, 2022 | |
Trade and other payables | |
Schedule of trade and other payables | 31 December 30 June 31 December 2022 2022 2021 £’000 £’000 £’000 Trade payables 290,239 192,863 205,528 Other payables 13,420 18,982 20,259 Accrued expenses 66,079 89,016 69,384 Social security and other taxes 18,529 22,073 14,728 388,267 322,934 309,899 Less: non-current portion Trade payables 159,719 101,301 101,221 Other payables 776 1,046 1,332 Non-current trade and other payables 160,495 102,347 102,553 Current trade and other payables 227,772 220,587 207,346 |
Borrowings (Tables)
Borrowings (Tables) | 6 Months Ended |
Dec. 31, 2022 | |
Borrowings | |
Schedule of borrowings | 31 December 30 June 31 December 2022 2022 2021 £’000 £’000 £’000 Senior secured notes 350,626 347,173 312,318 Secured term loan facility 185,028 183,192 164,734 Revolving credit facilities 200,000 100,000 100,000 Accrued interest on senior secured notes and revolving credit facilities 6,246 5,757 5,185 741,900 636,122 582,237 Less: non-current portion Senior secured notes 350,626 347,173 312,318 Secured term loan facility 185,028 183,192 164,734 Non-current borrowings 535,654 530,365 477,052 Current borrowings 206,246 105,757 105,185 |
Provisions (Tables)
Provisions (Tables) | 6 Months Ended |
Dec. 31, 2022 | |
Provisions | |
Schedule of provisions | Other (1) Tax (2) Total £’000 £’000 £’000 At 1 July 2021 722 4,080 4,802 Charged to profit or loss: Additional provisions recognized 129 428 557 At 31 December 2021 851 4,508 5,359 Charged to profit or loss: Reassessment of provisions 292 1,259 1,551 Additional provisions recognized — 5,734 5,734 At 30 June 2022 1,143 11,501 12,644 Charged/(credited) to profit or loss: Reassessment of provisions 97 (29) 68 Additional provisions recognised — 291 291 At 31 December 2022 1,240 11,763 13,003 Less: non-current portion Provisions (89) — (89) Current provisions 1,151 11,763 12,914 (1) Other provision includes, amongst other items, make good provisions as the Group is required to restore the leased premises of its office spaces to their original condition at the end of the respective lease terms. A provision has been recognized based upon the estimated expenditure required to remove any leasehold improvements. The remaining term on such leased properties is between 3 months and 15 months. (2) Provision in respect of player related tax matters. The timing of cash outflows is by its nature uncertain but it is management’s best estimate that these will be made within the next 12 months. |
Cash (used in)_generated from_2
Cash (used in)/generated from operations (Tables) | 6 Months Ended |
Dec. 31, 2022 | |
Cash (used in)/generated from operations | |
Schedule of cash (used in)/generated from operations | Three months ended Six months ended 31 December 31 December 2022 2021 2022 2021 £’000 £’000 £’000 £’000 Profit/(loss) before income tax 9,255 (2,067) (25,115) (21,887) Adjustments for: Depreciation 3,609 3,579 7,087 7,270 Amortization 44,971 38,653 85,110 73,787 Loss/(profit) on disposal of intangible assets 2,588 318 (14,020) (17,158) Net finance (income)/costs (12,115) 7,472 18,873 17,126 Non-cash employee benefit expense - equity-settled share-based payments 626 433 1,155 968 Foreign exchange losses/(gains) on operating activities 5,140 (398) 3,967 (302) Reclassified from hedging reserve (367) 90 (530) 30 Changes in working capital: Inventories 480 (105) (1,072) (796) Prepayments 4,638 4,776 (10,928) (13,751) Contract assets – accrued revenue (7,366) (34,471) (17,266) (29,284) Trade receivables (64,070) (5,832) (48,087) (5,541) Other receivables (497) 151 (857) (650) Contract liabilities – deferred revenue (23,898) (25,963) (14,716) 39,615 Trade and other payables (19,821) (12,532) (36,974) (3,864) Provisions 194 329 359 557 Cash (used in)/generated from operations (56,633) (25,567) (53,014) 46,120 |
Financial risk management (Tabl
Financial risk management (Tables) | 6 Months Ended |
Dec. 31, 2022 | |
Financial risk management | |
Schedule of net borrowings being hedged at balance sheet date | 31 December 30 June 31 December 2022 2022 2021 $’000 $’000 $’000 USD borrowings 650,000 650,000 650,000 Hedged USD cash (8,900) (37,000) (13,023) Net USD debt 641,100 613,000 636,977 Hedged future USD revenues (1) (50,780) (22,800) (34,124) Unhedged USD borrowings 590,320 590,200 602,853 Closing USD exchange rate ($: £) 1.2040 1.2151 1.3486 (1) |
Schedule of interest rate swaps at reporting date that are used to hedge borrowings | 31 December 30 June 31 December 2022 2022 2021 Principal value of loan outstanding ($’000) 150,000 150,000 150,000 Rate received 1 month $ LIBOR 1 month $ LIBOR 1 month $ LIBOR Rate paid Fixed 2.032 % Fixed 2.032 % Fixed 2.032 % Expiry date 30 June 2024 30 June 2024 30 June 2024 |
Contingent liabilities and co_2
Contingent liabilities and contingent assets (Tables) | 6 Months Ended |
Dec. 31, 2022 | |
Contingent liabilities and contingent assets | |
Schedule of potential amount payable by type of condition and category of player | First team squad Other Total Type of condition £’000 £’000 £’000 MUFC appearances/team success/new contract 83,369 13,222 96,591 International appearances 10,444 1,082 11,526 Awards 32,980 — 32,980 126,793 14,304 141,097 |
Subsidiaries (Tables)
Subsidiaries (Tables) | 6 Months Ended |
Dec. 31, 2022 | |
Subsidiaries | |
Schedule of subsidiary undertakings | % of ownership Subsidiaries Principal activity interest Red Football Finance Limited* Dormant company 100 Red Football Holdings Limited* Holding company 100 Red Football Shareholder Limited Holding company 100 Red Football Joint Venture Limited Holding company 100 Red Football Limited Holding company 100 Red Football Junior Limited Holding company 100 Manchester United Limited Holding company 100 Alderley Urban Investments Limited Property investment 100 Manchester United Football Club Limited Professional football club 100 Manchester United Women’s Football Club Limited Professional football club 100 Manchester United Interactive Limited Dormant company 100 MU 099 Limited Dormant company 100 MU Commercial Holdings Limited Non-trading company 100 MU Commercial Holdings Junior Limited Non-trading company 100 MU Finance Limited Non-trading company 100 MU RAML Limited Retail and licensing company 100 MUTV Limited Media company 100 RAML USA LLC Dormant company 100 * |
Basis of preparation (Details)
Basis of preparation (Details) | Dec. 31, 2022 GBP (£) | Dec. 31, 2022 USD ($) | Jun. 30, 2022 GBP (£) | Jun. 30, 2022 USD ($) | Dec. 31, 2021 GBP (£) | Dec. 31, 2021 USD ($) |
Going concern | ||||||
Cash resources | £ 31,045,000 | £ 121,223,000 | £ 87,434,000 | |||
Borrowings | 741,900,000 | 636,122,000 | 582,237,000 | |||
Senior secured notes | ||||||
Going concern | ||||||
Principal amount / Notional amount | $ | $ 425,000,000 | $ 425,000,000 | $ 425,000,000 | |||
Borrowings | 350,626,000 | 347,173,000 | 312,318,000 | |||
Secured term loan facility | ||||||
Going concern | ||||||
Principal amount / Notional amount | $ | $ 225,000,000 | $ 225,000,000 | $ 225,000,000 | |||
Borrowings | 185,028,000 | 183,192,000 | 164,734,000 | |||
Revolving facilities | ||||||
Going concern | ||||||
Undrawn borrowing facilities | 100,000,000 | 200,000,000 | 100,000,000 | |||
Principal amount / Notional amount | 300,000,000 | |||||
Borrowings | 200,000,000 | £ 100,000,000 | £ 100,000,000 | |||
Revolving facilities | 2025 | ||||||
Going concern | ||||||
Principal amount / Notional amount | 150,000,000 | |||||
Revolving facilities | 2027 | ||||||
Going concern | ||||||
Principal amount / Notional amount | £ 150,000,000 |
Accounting policies - Effect of
Accounting policies - Effect of IBOR reform (Details) £ in Thousands | Dec. 31, 2022 GBP (£) | Dec. 31, 2022 USD ($) | Jun. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) |
Accounting policies | ||||
Carrying value of assets which reference USD LIBOR and have not yet transitioned to an alternative interest rate benchmark | £ 4,901 | |||
Carrying value of liabilities which reference USD LIBOR and have not yet transitioned to an alternative interest rate benchmark | (185,028) | |||
Borrowings | ||||
Accounting policies | ||||
Carrying value of liabilities which reference USD LIBOR and have not yet transitioned to an alternative interest rate benchmark | (185,028) | |||
Derivative financial instruments | ||||
Accounting policies | ||||
Carrying value of assets which reference USD LIBOR and have not yet transitioned to an alternative interest rate benchmark | £ 4,901 | |||
Secured term loan facility | ||||
Accounting policies | ||||
Notional Amount | $ | $ 225,000,000 | $ 225,000,000 | $ 225,000,000 |
Seasonality of revenue (Details
Seasonality of revenue (Details) - adidas £ in Millions | Aug. 01, 2015 GBP (£) item |
Estimates and judgments | |
Term of agreement (in years) | 10 years |
Minimum guarantee payable by parties under agreement | £ 750 |
Number of consecutive seasons of non-participation in Champions League that would impact guarantee payable by adidas | item | 2 |
Maximum increase in guarantee payable per year | £ 4 |
Maximum possible percentage of reduction in guarantee per year | 30% |
Revenue from contracts with c_3
Revenue from contracts with customers - Disaggregation of revenue from contract with customers (Details) £ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2022 GBP (£) | Dec. 31, 2021 GBP (£) | Dec. 31, 2022 GBP (£) component segment | Dec. 31, 2021 GBP (£) | |
Revenue from contracts with customers | ||||
Number of material segments | segment | 1 | |||
Number of main components of revenue | component | 3 | |||
Revenue from contracts with customers | £ 167,368 | £ 185,440 | £ 311,022 | £ 311,901 |
Commercial | ||||
Revenue from contracts with customers | ||||
Revenue from contracts with customers | 78,689 | 64,408 | 166,077 | 128,773 |
Sponsorship | ||||
Revenue from contracts with customers | ||||
Revenue from contracts with customers | 50,423 | 35,215 | 108,234 | 71,484 |
Retail, merchandising, apparel & product licensing | ||||
Revenue from contracts with customers | ||||
Revenue from contracts with customers | 28,266 | 29,193 | 57,843 | 57,289 |
Broadcasting | ||||
Revenue from contracts with customers | ||||
Revenue from contracts with customers | 58,789 | 86,413 | 93,792 | 129,755 |
Domestic competitions | ||||
Revenue from contracts with customers | ||||
Revenue from contracts with customers | 44,399 | 46,383 | 72,026 | 69,262 |
European competitions | ||||
Revenue from contracts with customers | ||||
Revenue from contracts with customers | 12,895 | 38,266 | 18,582 | 56,813 |
Other | ||||
Revenue from contracts with customers | ||||
Revenue from contracts with customers | 1,495 | 1,764 | 3,184 | 3,680 |
Matchday | ||||
Revenue from contracts with customers | ||||
Revenue from contracts with customers | £ 29,890 | £ 34,619 | £ 51,153 | £ 53,373 |
Revenue from contracts with c_4
Revenue from contracts with customers - Assets and liabilities related to contracts with customers (Details) - GBP (£) £ in Thousands | 6 Months Ended | ||
Dec. 31, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | |
Revenue from contracts with customers | |||
Contract liabilities - deferred revenue at beginning of period | £ (182,544) | £ (180,541) | £ (140,926) |
Recognized in revenue during the period | 132,606 | 31,072 | 75,882 |
Cash received/amounts invoiced during the period | (117,890) | (33,075) | (115,497) |
Contract liabilities - deferred revenue at end of period | (167,828) | (182,544) | (180,541) |
Current contract assets and contract liabilities | |||
Revenue from contracts with customers | |||
Contract assets - accrued revenue at beginning of period | 36,239 | 69,828 | 40,544 |
Recognized in revenue during the period | 64,230 | 33,567 | 66,055 |
Cash received/amounts invoiced during the period | (46,964) | (67,156) | (36,771) |
Contract assets - accrued revenue at end of period | 53,505 | 36,239 | 69,828 |
Contract liabilities - deferred revenue at beginning of period | (165,847) | (155,931) | (117,984) |
Recognized in revenue during the period | 132,606 | 31,072 | 75,882 |
Cash received/amounts invoiced during the period | (117,890) | (33,075) | (115,497) |
Reclassified during the period | (9,423) | (7,913) | 1,668 |
Contract liabilities - deferred revenue at end of period | (160,554) | (165,847) | (155,931) |
Non-current contract assets and contract liabilities | |||
Revenue from contracts with customers | |||
Contract liabilities - deferred revenue at beginning of period | (16,697) | (24,610) | (22,942) |
Reclassified during the period | 9,423 | 7,913 | (1,668) |
Contract liabilities - deferred revenue at end of period | £ (7,274) | £ (16,697) | £ (24,610) |
Operating expenses (Details)
Operating expenses (Details) - GBP (£) £ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Operating expenses | ||||
Employee benefit expenses | £ (77,310) | £ (97,745) | £ (159,566) | £ (186,250) |
Depreciation - property, plant and equipment (Note 14) | (2,953) | (3,066) | (5,927) | (6,259) |
Depreciation - right-of-use assets (Note 15) | (586) | (443) | (1,020) | (871) |
Depreciation - investment property (Note 16) | (70) | (70) | (140) | (140) |
Amortization (Note 17) | (44,971) | (38,653) | (85,110) | (73,787) |
Sponsorship, other commercial and broadcasting costs | (4,353) | (4,453) | (15,065) | (9,994) |
External Matchday costs | (7,703) | (6,777) | (13,659) | (12,438) |
Property costs | (5,090) | (2,950) | (9,518) | (5,246) |
Other operating expenses | (24,604) | (15,568) | (41,279) | (28,843) |
Exceptional items (Note 8) | (9,992) | (9,992) | ||
Total operating expenses | £ (167,640) | £ (179,717) | £ (331,284) | £ (333,820) |
Exceptional items (Details)
Exceptional items (Details) - GBP (£) £ in Thousands | 3 Months Ended | 6 Months Ended |
Dec. 31, 2021 | Dec. 31, 2021 | |
Exceptional items | ||
Compensation for loss of office | £ (9,127) | £ (9,127) |
Football League pension scheme deficit (Note 29) | (865) | (865) |
Total exceptional items | £ (9,992) | £ (9,992) |
(Loss)_profit on disposal of _3
(Loss)/profit on disposal of intangible assets (Details) - GBP (£) £ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
(Loss)/profit on disposal of intangible assets | ||||
(Loss)/profit on disposal of registrations | £ (2,588) | £ (660) | £ 14,020 | £ 16,658 |
Player loan income | 342 | 500 | ||
Total (Loss)/profit on disposal of intangible assets | £ (2,588) | £ (318) | £ 14,020 | £ 17,158 |
Net finance income_(costs) (Det
Net finance income/(costs) (Details) - GBP (£) £ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Net finance income/(costs) | ||||
Interest payable on bank loans and overdrafts | £ (393) | £ (430) | £ (1,206) | £ (945) |
Interest payable on secured term loan facility, senior secured notes and revolving facilities | (7,552) | (4,678) | (13,762) | (9,260) |
Interest payable on lease liabilities (Note 15) | (41) | (25) | (64) | (50) |
Amortization of issue costs on secured term loan facility and senior secured notes | (188) | (183) | (365) | (354) |
Foreign exchange losses on retranslation of unhedged US dollar borrowings | (591) | (2,703) | (10,560) | |
Unwinding of discount relating to registrations | (2,305) | (633) | (3,477) | (1,212) |
Interest on provisions | (78) | (138) | ||
Hedge ineffectiveness on cash flow hedges | (87) | (241) | (210) | |
Fair value movements on derivative financial instruments: | ||||
Embedded foreign exchange derivatives | (15,720) | (846) | ||
Total finance costs | (26,277) | (7,473) | (21,956) | (22,591) |
Interest receivable on short-term bank deposits | 61 | 1 | 191 | 3 |
Foreign exchange gains on retranslation of unhedged US dollar borrowings | 37,737 | |||
Reclassified from hedging reserve | 326 | |||
Hedge ineffectiveness on cash flow hedges | 594 | |||
Fair value movement on derivative financial instruments: | ||||
Embedded foreign exchange derivatives | 2,892 | 5,136 | ||
Total finance income | 38,392 | 1 | 3,083 | 5,465 |
Net finance income/(costs) | £ 12,115 | £ (7,472) | £ (18,873) | £ (17,126) |
Income tax (expense)_credit - C
Income tax (expense)/credit - Current tax and Deferred tax (Details) - GBP (£) £ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Apr. 30, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Jun. 30, 2023 | Jun. 30, 2022 | |
Current tax | |||||||
Total current tax expense | £ (408) | £ (77) | £ (503) | £ (469) | |||
Deferred tax | |||||||
Origination and reversal of temporary differences | (2,541) | 742 | 5,408 | 5,415 | |||
Total deferred tax credit | (2,541) | 742 | 5,408 | 5,415 | £ 29,431 | ||
Total tax expense | |||||||
Total income tax (expense)/credit | (2,949) | 665 | 4,905 | 4,946 | |||
Applicable tax rate | 23.43% | ||||||
Forecast | |||||||
Total tax expense | |||||||
Applicable tax rate | 20.99% | ||||||
UK and US | |||||||
Current tax | |||||||
Current tax on loss/profit for the period | (67) | (60) | £ (136) | (117) | |||
US | |||||||
Total tax expense | |||||||
Applicable tax rate | 21% | ||||||
UK | |||||||
Total tax expense | |||||||
Applicable tax rate | 25% | ||||||
Other than UK and US | |||||||
Current tax | |||||||
Current tax on loss/profit for the period | £ (341) | £ (17) | £ (367) | £ (352) |
Income tax (expense)_credit - A
Income tax (expense)/credit - Additional information related to tax (Details) - GBP (£) £ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Jun. 30, 2022 | |
Income tax related to recognition in other comprehensive income | |||||
Deferred tax (Note 18) | £ (517) | £ (350) | £ (419) | £ (291) | £ (1,287) |
Total income tax expense recognized in other comprehensive income | £ (517) | £ (350) | £ (419) | £ (291) |
Earnings_(loss) per share (Deta
Earnings/(loss) per share (Details) £ / shares in Units, £ in Thousands, shares in Thousands | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2022 GBP (£) £ / shares item shares | Dec. 31, 2021 GBP (£) £ / shares shares | Dec. 31, 2022 GBP (£) £ / shares item shares | Jun. 30, 2022 GBP (£) | Dec. 31, 2021 GBP (£) £ / shares shares | |
Earnings/(loss) per share | |||||
Profit/(loss) for the period | £ | £ 6,306 | £ (1,402) | £ (20,210) | £ (98,569) | £ (16,941) |
Basic earnings/(loss) per share | £ / shares | £ 0.0387 | £ (0.0086) | £ (0.1239) | £ (0.1039) | |
Diluted earnings/(loss) per share | £ / shares | £ 0.0385 | £ (0.0086) | £ (0.1239) | £ (0.1039) | |
Number of categories of dilutive potential ordinary shares | item | 1 | 1 | |||
Weighted average number of ordinary shares used as the denominator in calculating basic loss per share | 163,062 | 163,003 | 163,062 | 162,999 | |
Weighted average number of ordinary shares and potential ordinary shares used as the denominator in calculating diluted (loss)/earnings per share | 163,605 | 163,003 | 163,062 | 162,999 | |
Class A ordinary shares | |||||
Earnings/(loss) per share | |||||
Weighted average number of ordinary shares used as the denominator in calculating basic loss per share | 52,013 | 53,962 | 52,013 | 49,466 | |
Adjustment for calculation of diluted loss per share assumed conversion into Class A ordinary shares | 543 | ||||
Class B ordinary shares | |||||
Earnings/(loss) per share | |||||
Weighted average number of ordinary shares used as the denominator in calculating basic loss per share | 112,732 | 110,724 | 112,732 | 115,216 | |
Treasury shares | |||||
Earnings/(loss) per share | |||||
Weighted average number of ordinary shares used as the denominator in calculating basic loss per share | 1,683 | 1,683 | 1,683 | 1,683 |
Dividends (Details)
Dividends (Details) | 6 Months Ended | |||
Dec. 31, 2022 GBP (£) | Jun. 30, 2022 GBP (£) | Dec. 31, 2021 GBP (£) | Dec. 31, 2021 USD ($) $ / shares | |
Disclosure of classes of share capital | ||||
Dividends paid | £ 0 | £ 22,884,000 | £ 10,669,000 | $ 14,669,000 |
Dividends paid per share | $ 0.09 |
Property, plant and equipment_2
Property, plant and equipment (Details) - GBP (£) £ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Reconciliation of changes in property, plant and equipment | ||||
Opening amount | £ 242,661 | £ 247,059 | ||
Additions | 6,700 | 5,045 | ||
Depreciation charge | £ (2,953) | £ (3,066) | (5,927) | (6,259) |
Closing amount | 243,434 | 245,845 | 243,434 | 245,845 |
Cost / gross value | ||||
Reconciliation of changes in property, plant and equipment | ||||
Opening amount | 396,333 | 390,824 | ||
Closing amount | 403,033 | 395,869 | 403,033 | 395,869 |
Accumulated depreciation, amortization and impairment | ||||
Reconciliation of changes in property, plant and equipment | ||||
Opening amount | (153,672) | (143,765) | ||
Closing amount | (159,599) | (150,024) | (159,599) | (150,024) |
Property | ||||
Reconciliation of changes in property, plant and equipment | ||||
Opening amount | 218,116 | 219,120 | ||
Additions | 1,884 | 2,142 | ||
Depreciation charge | (1,703) | (1,695) | ||
Closing amount | 218,297 | 219,567 | 218,297 | 219,567 |
Property | Cost / gross value | ||||
Reconciliation of changes in property, plant and equipment | ||||
Opening amount | 281,377 | 278,987 | ||
Closing amount | 283,261 | 281,129 | 283,261 | 281,129 |
Property | Accumulated depreciation, amortization and impairment | ||||
Reconciliation of changes in property, plant and equipment | ||||
Opening amount | (63,261) | (59,867) | ||
Closing amount | (64,964) | (61,562) | (64,964) | (61,562) |
Plant and machinery | ||||
Reconciliation of changes in property, plant and equipment | ||||
Opening amount | 5,269 | 5,345 | ||
Additions | 1,167 | 989 | ||
Transfers | 232 | |||
Depreciation charge | (1,330) | (1,587) | ||
Closing amount | 5,106 | 4,979 | 5,106 | 4,979 |
Plant and machinery | Cost / gross value | ||||
Reconciliation of changes in property, plant and equipment | ||||
Opening amount | 39,562 | 38,309 | ||
Closing amount | 40,729 | 39,559 | 40,729 | 39,559 |
Plant and machinery | Accumulated depreciation, amortization and impairment | ||||
Reconciliation of changes in property, plant and equipment | ||||
Opening amount | (34,293) | (32,964) | ||
Closing amount | (35,623) | (34,580) | (35,623) | (34,580) |
Fixtures and fittings | ||||
Reconciliation of changes in property, plant and equipment | ||||
Opening amount | 19,276 | 22,594 | ||
Additions | 3,649 | 1,914 | ||
Transfers | (232) | |||
Depreciation charge | (2,894) | (2,977) | ||
Closing amount | 20,031 | 21,299 | 20,031 | 21,299 |
Fixtures and fittings | Cost / gross value | ||||
Reconciliation of changes in property, plant and equipment | ||||
Opening amount | 75,394 | 73,528 | ||
Closing amount | 79,043 | 75,181 | 79,043 | 75,181 |
Fixtures and fittings | Accumulated depreciation, amortization and impairment | ||||
Reconciliation of changes in property, plant and equipment | ||||
Opening amount | (56,118) | (50,934) | ||
Closing amount | £ (59,012) | £ (53,882) | £ (59,012) | £ (53,882) |
Leases - Amounts recognized in
Leases - Amounts recognized in the consolidated balance sheet (Details) - GBP (£) | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | |
Leases | ||||
Right-of-use assets | £ 3,353,000 | £ 4,072,000 | £ 3,747,000 | |
Additions to right-of-use assets | 301,000 | 1,428,000 | ||
Lease liabilities: | ||||
Current | 804,000 | 1,561,000 | 763,000 | |
Non-current | 2,475,000 | 2,869,000 | 2,994,000 | |
Total lease liabilities | 3,279,000 | 4,430,000 | 3,757,000 | £ 4,340,000 |
Property | ||||
Leases | ||||
Right-of-use assets | 2,925,000 | 3,655,000 | 3,328,000 | |
Plant and machinery | ||||
Leases | ||||
Right-of-use assets | £ 428,000 | £ 417,000 | £ 419,000 |
Leases - Movement in lease liab
Leases - Movement in lease liabilities (Details) - GBP (£) £ in Thousands | 6 Months Ended | ||
Dec. 31, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | |
Lease liabilities | |||
Beginning balance | £ 4,430 | £ 3,757 | £ 4,340 |
Cash flows | (1,515) | (576) | (868) |
Additions | 300 | 1,202 | 235 |
Accretion expense | 64 | 47 | 50 |
Ending balance | £ 3,279 | £ 4,430 | £ 3,757 |
Leases - Amounts recognized i_2
Leases - Amounts recognized in the consolidated statement of profit or loss (Details) - GBP (£) £ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Leases | ||||
Depreciation - right-of-use assets | £ (586) | £ (443) | £ (1,020) | £ (871) |
Interest expense (included in finance cost) | (41) | (25) | (64) | (50) |
Expense relating to short-term leases (included in operating expenses) | (99) | (97) | (194) | (193) |
Expense relating to low value leases (included in operating expenses) | (10) | (21) | ||
Property | ||||
Leases | ||||
Depreciation - right-of-use assets | (361) | (388) | (730) | (772) |
Plant and machinery | ||||
Leases | ||||
Depreciation - right-of-use assets | £ (225) | £ (55) | £ (290) | £ (99) |
Investment property (Details)
Investment property (Details) - GBP (£) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Investment property | ||||
Opening amount | £ 20,273,000 | £ 20,553,000 | ||
Depreciation charge | £ (70,000) | £ (70,000) | (140,000) | (140,000) |
Closing amount | 20,133,000 | 20,413,000 | 20,133,000 | 20,413,000 |
Cost / gross value | ||||
Investment property | ||||
Opening amount | 20,553,000 | 32,193,000 | ||
Closing amount | 32,193,000 | 32,193,000 | 32,193,000 | 32,193,000 |
Accumulated depreciation, amortization and impairment | ||||
Investment property | ||||
Opening amount | (280,000) | (11,640,000) | ||
Closing amount | £ (12,060,000) | £ (11,780,000) | (12,060,000) | £ (11,780,000) |
Not measured at fair value in statement of financial position but for which fair value is disclosed | ||||
Investment property | ||||
Opening amount | £ 38,250,000 |
Intangible assets - Reconciliat
Intangible assets - Reconciliation of intangible assets (Details) - GBP (£) £ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Reconciliation of intangible assets | ||||
Opening amount | £ 743,278 | £ 754,467 | ||
Additions | 222,171 | 145,846 | ||
Disposals | (8,810) | (14,274) | ||
Amortization charge | £ (44,971) | £ (38,653) | (85,110) | (73,787) |
Closing amount | 871,529 | 812,252 | 871,529 | 812,252 |
Cost / gross value | ||||
Reconciliation of intangible assets | ||||
Opening amount | 1,219,466 | 1,299,307 | ||
Closing amount | 1,409,586 | 1,418,399 | 1,409,586 | 1,418,399 |
Accumulated depreciation, amortization and impairment | ||||
Reconciliation of intangible assets | ||||
Opening amount | (476,188) | (544,840) | ||
Closing amount | (538,057) | (606,147) | (538,057) | (606,147) |
Goodwill | ||||
Reconciliation of intangible assets | ||||
Opening amount | 421,453 | 421,453 | ||
Closing amount | 421,453 | 421,453 | 421,453 | 421,453 |
Goodwill | Cost / gross value | ||||
Reconciliation of intangible assets | ||||
Opening amount | 421,453 | 421,453 | ||
Closing amount | 421,453 | 421,453 | 421,453 | 421,453 |
Registrations | ||||
Reconciliation of intangible assets | ||||
Opening amount | 316,211 | 327,987 | ||
Additions | 221,472 | 144,302 | ||
Disposals | (8,810) | (14,274) | ||
Amortization charge | (83,736) | (72,510) | ||
Closing amount | 445,137 | 385,505 | 445,137 | 385,505 |
Registrations | Cost / gross value | ||||
Reconciliation of intangible assets | ||||
Opening amount | 779,196 | 861,210 | ||
Closing amount | 968,617 | 979,655 | 968,617 | 979,655 |
Registrations | Accumulated depreciation, amortization and impairment | ||||
Reconciliation of intangible assets | ||||
Opening amount | (462,985) | (533,223) | ||
Closing amount | (523,480) | (594,150) | (523,480) | (594,150) |
Other intangible assets | ||||
Reconciliation of intangible assets | ||||
Opening amount | 5,614 | 5,027 | ||
Additions | 699 | 1,544 | ||
Amortization charge | (1,374) | (1,277) | ||
Closing amount | 4,939 | 5,294 | 4,939 | 5,294 |
Other intangible assets | Cost / gross value | ||||
Reconciliation of intangible assets | ||||
Opening amount | 18,817 | 16,644 | ||
Closing amount | 19,516 | 17,291 | 19,516 | 17,291 |
Other intangible assets | Accumulated depreciation, amortization and impairment | ||||
Reconciliation of intangible assets | ||||
Opening amount | (13,203) | (11,617) | ||
Closing amount | £ (14,577) | £ (11,997) | £ (14,577) | £ (11,997) |
Intangible assets - Other intan
Intangible assets - Other intangible assets (Details) - GBP (£) | Dec. 31, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | Jun. 30, 2021 |
Intangible assets | ||||
Intangible assets and goodwill | £ 871,529,000 | £ 743,278,000 | £ 812,252,000 | £ 754,467,000 |
Cost / gross value | ||||
Intangible assets | ||||
Intangible assets and goodwill | 1,409,586,000 | 1,219,466,000 | 1,418,399,000 | 1,299,307,000 |
Accumulated depreciation, amortization and impairment | ||||
Intangible assets | ||||
Intangible assets and goodwill | (538,057,000) | (476,188,000) | (606,147,000) | (544,840,000) |
Other intangible assets | ||||
Intangible assets | ||||
Intangible assets and goodwill | 4,939,000 | 5,614,000 | 5,294,000 | 5,027,000 |
Other intangible assets | Cost / gross value | ||||
Intangible assets | ||||
Intangible assets and goodwill | 19,516,000 | 18,817,000 | 17,291,000 | 16,644,000 |
Other intangible assets | Cost / gross value | Internally generated | ||||
Intangible assets | ||||
Intangible assets and goodwill | 2,103,000 | 2,103,000 | ||
Other intangible assets | Accumulated depreciation, amortization and impairment | ||||
Intangible assets | ||||
Intangible assets and goodwill | (14,577,000) | £ (13,203,000) | (11,997,000) | £ (11,617,000) |
Other intangible assets | Accumulated depreciation, amortization and impairment | Internally generated | ||||
Intangible assets | ||||
Intangible assets and goodwill | £ (2,101,000) | £ (2,067,000) |
Deferred tax - Analysis of the
Deferred tax - Analysis of the deferred tax (Details) - GBP (£) £ in Thousands | Dec. 31, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | Jun. 30, 2021 |
Analysis of deferred tax | ||||
Net deferred tax liability | £ (2,413) | £ (7,402) | £ (30,422) | £ (35,546) |
Deferred tax - Movements in net
Deferred tax - Movements in net deferred tax asset (Details) - GBP (£) £ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Apr. 30, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Jun. 30, 2022 | |
Movements in net deferred tax asset | ||||||
Net deferred tax liability at beginning of period | £ (7,402) | £ (35,546) | £ (35,546) | |||
Credited to the statement of profit or loss (Note 11) | £ (2,541) | £ 742 | 5,408 | 5,415 | 29,431 | |
(Expensed)/credited to other comprehensive income | (517) | (350) | (419) | (291) | (1,287) | |
Net deferred tax liability at end of period | £ (2,413) | £ (30,422) | £ (2,413) | £ (30,422) | £ (7,402) | |
Tax rate | 23.43% | |||||
US | ||||||
Movements in net deferred tax asset | ||||||
Tax rate | 21% | |||||
UK | ||||||
Movements in net deferred tax asset | ||||||
Tax rate | 25% |
Inventories (Details)
Inventories (Details) - GBP (£) | 6 Months Ended | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | Jun. 30, 2022 | |
Inventories | |||
Finished goods | £ 3,272,000 | £ 2,876,000 | £ 2,200,000 |
Cost of inventory recognized during the period | £ 7,042,000 | £ 7,263,000 | £ 11,345,000 |
Trade receivables (Details)
Trade receivables (Details) - GBP (£) | Dec. 31, 2022 | Jun. 30, 2022 | Dec. 31, 2021 |
Trade receivables | |||
Trade receivables | £ 137,633,000 | £ 78,967,000 | £ 95,087,000 |
Less: non-current portion | |||
Trade receivables | 21,224,000 | 29,757,000 | 41,024,000 |
Current trade receivables | 116,409,000 | 49,210,000 | 54,063,000 |
Transfer fees receivable | 55,311,000 | 50,418,000 | 61,256,000 |
Deferred revenue contractually payable to Group | 35,087,000 | 19,903,000 | 21,497,000 |
Gross contractual trade receivables pre discounting | 139,199,000 | 80,150,000 | 96,805,000 |
Due after 1 year | |||
Less: non-current portion | |||
Transfer fees receivable | 21,224,000 | 29,757,000 | 41,024,000 |
Cost / gross value | |||
Trade receivables | |||
Trade receivables | 150,863,000 | 91,207,000 | 103,082,000 |
Accumulated impairment | |||
Trade receivables | |||
Trade receivables | £ (13,230,000) | £ (12,240,000) | £ (7,995,000) |
Derivative financial instrume_3
Derivative financial instruments (Details) - GBP (£) £ in Thousands | Dec. 31, 2022 | Jun. 30, 2022 | Dec. 31, 2021 |
Derivative financial instruments | |||
Derivative financial instruments, assets | £ 30,065 | £ 23,059 | £ 5,580 |
Derivative financial instruments, liabilities | (519) | (81) | (4,767) |
Derivative financial instruments, non-current assets | 22,189 | 16,462 | 4,434 |
Derivative financial instruments, non-current liabilities | (519) | (49) | (3,908) |
Derivative financial instruments, current assets | 7,876 | 6,597 | 1,146 |
Derivative financial instruments, current liabilities | (32) | (859) | |
Interest rate swap | Derivatives used for hedging: | |||
Derivative financial instruments | |||
Derivative financial instruments, assets | 4,901 | 2,458 | |
Derivative financial instruments, non-current assets | 4,901 | 2,458 | |
Embedded foreign exchange derivatives | At fair value through profit and loss | |||
Derivative financial instruments | |||
Derivative financial instruments, assets | 22,561 | 20,286 | 5,580 |
Derivative financial instruments, non-current assets | 15,938 | 13,786 | |
Forward foreign exchange contracts | At fair value through profit and loss | |||
Derivative financial instruments | |||
Derivative financial instruments, assets | 2,603 | 315 | |
Derivative financial instruments, non-current assets | 1,350 | 218 | 4,434 |
Interest rate swap | Derivatives used for hedging: | |||
Derivative financial instruments | |||
Derivative financial instruments, liabilities | (3,045) | ||
Derivative financial instruments, non-current liabilities | (3,045) | ||
Embedded foreign exchange derivatives | At fair value through profit and loss: | |||
Derivative financial instruments | |||
Derivative financial instruments, liabilities | (194) | ||
Derivative financial instruments, non-current liabilities | (96) | ||
Forward foreign exchange contracts | Derivatives used for hedging: | |||
Derivative financial instruments | |||
Derivative financial instruments, liabilities | (76) | ||
Forward foreign exchange contracts | At fair value through profit and loss: | |||
Derivative financial instruments | |||
Derivative financial instruments, liabilities | (519) | (81) | (1,452) |
Derivative financial instruments, non-current liabilities | £ (519) | £ (49) | £ (767) |
Cash and cash equivalents (Deta
Cash and cash equivalents (Details) - GBP (£) £ in Thousands | Dec. 31, 2022 | Jun. 30, 2022 | Dec. 31, 2021 |
Cash and cash equivalents | |||
Cash at bank and in hand | £ 31,045 | £ 121,223 | £ 87,434 |
Share capital (Details)
Share capital (Details) | 6 Months Ended | ||||
Dec. 31, 2022 GBP (£) Vote item shares | Jun. 30, 2022 GBP (£) shares | Dec. 31, 2021 GBP (£) shares | Dec. 31, 2022 $ / shares | Dec. 31, 2022 GBP (£) shares | |
Ordinary shares | |||||
Balance at the beginning | £ | £ 53,000 | £ 53,000 | |||
Balance at the end | £ | £ 53,000 | 53,000 | £ 53,000 | ||
Number of class of ordinary shares | item | 2 | ||||
Number of class A shares to which one B share is convertible | shares | 1 | ||||
Proportion of votes required for special resolutions | 66.67% | ||||
Treasury shares | £ | £ 21,305,000 | £ 21,305,000 | £ 21,305,000 | ||
Ordinary shares | |||||
Number of shares | |||||
Balance at the beginning (in shares) | shares | 164,745,000 | 164,686,000 | 164,677,000 | ||
Employee share-based compensation awards - issue of shares (in shares) | shares | 0 | 59,000 | 9,000 | ||
Balance at the end (in shares) | shares | 164,745,000 | 164,745,000 | 164,686,000 | ||
Ordinary shares | |||||
Balance at the beginning | £ | £ 53,000 | £ 53,000 | £ 53,000 | ||
Employee share-based compensation awards - issue of shares | £ | 0 | 0 | 0 | ||
Balance at the end | £ | £ 53,000 | £ 53,000 | £ 53,000 | ||
Class A ordinary shares | |||||
Number of shares | |||||
Balance at the end (in shares) | shares | 54,537,360 | ||||
Ordinary shares | |||||
Par value per ordinary share (in dollars per share) | $ / shares | $ 0.0005 | ||||
Number of voting right per share | Vote | 1 | ||||
Number of shares held in treasury | shares | 1,682,896 | ||||
Treasury shares | £ | £ 21,305,000 | ||||
Class B ordinary shares | |||||
Number of shares | |||||
Balance at the end (in shares) | shares | 110,207,613 | ||||
Ordinary shares | |||||
Par value per ordinary share (in dollars per share) | $ / shares | $ 0.0005 | ||||
Number of voting right per share | Vote | 10 | ||||
Percentage of ordinary shares outstanding below which Class B shares will convert to Class A | 10% | ||||
Percentage of voting power of shareholders | 67% |
Treasury shares (Details)
Treasury shares (Details) - GBP (£) £ in Thousands, shares in Thousands | Dec. 31, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | Jun. 30, 2021 |
Treasury shares, Value | ||||
Value of shares | £ (109,752) | £ (127,508) | £ (246,745) | £ (272,512) |
Treasury shares | ||||
Treasury shares, Number of shares | ||||
Number of shares | 1,683 | 1,683 | 1,683 | 1,683 |
Treasury shares, Value | ||||
Value of shares | £ 21,305 | £ 21,305 | £ 21,305 | £ 21,305 |
Trade and other payables (Detai
Trade and other payables (Details) - GBP (£) | Dec. 31, 2022 | Jun. 30, 2022 | Dec. 31, 2021 |
Trade and other payables | |||
Trade payables | £ 290,239,000 | £ 192,863,000 | £ 205,528,000 |
Other payables | 13,420,000 | 18,982,000 | 20,259,000 |
Accrued expenses | 66,079,000 | 89,016,000 | 69,384,000 |
Social security and other taxes | 18,529,000 | 22,073,000 | 14,728,000 |
Total trade and other payables | 388,267,000 | 322,934,000 | 309,899,000 |
Less: non-current portion | |||
Trade payables | 159,719,000 | 101,301,000 | 101,221,000 |
Other payables | 776,000 | 1,046,000 | 1,332,000 |
Non-current trade and other payables | 160,495,000 | 102,347,000 | 102,553,000 |
Current trade and other payables | 227,772,000 | 220,587,000 | 207,346,000 |
Transfer fees and other associated costs | 280,370,000 | 181,545,000 | 188,765,000 |
Gross contractual trade payables pre discounting | 307,913,000 | 196,396,000 | 210,747,000 |
Due after 1 year | |||
Less: non-current portion | |||
Transfer fees and other associated costs | 159,719,000 | 101,301,000 | 101,221,000 |
Between 1 and 2 years | |||
Less: non-current portion | |||
Transfer fees and other associated costs | 79,385,000 | 54,732,000 | 54,120,000 |
Between 2 and 5 years | |||
Less: non-current portion | |||
Transfer fees and other associated costs | 79,855,000 | 46,569,000 | 47,101,000 |
Later than 5 years | |||
Less: non-current portion | |||
Transfer fees and other associated costs | £ 479,000 | £ 0 | £ 0 |
Borrowings (Details)
Borrowings (Details) | 6 Months Ended | |||||
Dec. 31, 2022 GBP (£) | Dec. 31, 2022 USD ($) | Jun. 30, 2022 GBP (£) | Jun. 30, 2022 USD ($) | Dec. 31, 2021 GBP (£) | Dec. 31, 2021 USD ($) | |
Disclosure of detailed information about borrowings | ||||||
Total borrowings | £ 741,900,000 | £ 636,122,000 | £ 582,237,000 | |||
Non-current borrowings | 535,654,000 | 530,365,000 | 477,052,000 | |||
Current borrowings | 206,246,000 | 105,757,000 | 105,185,000 | |||
Senior secured notes | ||||||
Disclosure of detailed information about borrowings | ||||||
Total borrowings | 350,626,000 | 347,173,000 | 312,318,000 | |||
Non-current borrowings | 350,626,000 | 347,173,000 | 312,318,000 | |||
Unamortized issue costs on borrowings | 2,354,000 | 2,591,000 | 2,823,000 | |||
Principal amount / Notional amount | $ | $ 425,000,000 | $ 425,000,000 | $ 425,000,000 | |||
Secured term loan facility | ||||||
Disclosure of detailed information about borrowings | ||||||
Total borrowings | 185,028,000 | 183,192,000 | 164,734,000 | |||
Non-current borrowings | 185,028,000 | 183,192,000 | 164,734,000 | |||
Unamortized issue costs on borrowings | 1,850,000 | 1,979,000 | 2,107,000 | |||
Principal amount / Notional amount | $ | $ 225,000,000 | $ 225,000,000 | $ 225,000,000 | |||
Revolving facilities | ||||||
Disclosure of detailed information about borrowings | ||||||
Total borrowings | 200,000,000 | 100,000,000 | 100,000,000 | |||
Principal amount / Notional amount | 300,000,000 | |||||
Undrawn borrowing facilities | 100,000,000 | 200,000,000 | 100,000,000 | |||
Revolving facilities | 4 April 2025 | ||||||
Disclosure of detailed information about borrowings | ||||||
Principal amount / Notional amount | 150,000,000 | |||||
Accrued interest on senior secured notes and revolving credit facilities | ||||||
Disclosure of detailed information about borrowings | ||||||
Total borrowings | £ 6,246,000 | £ 5,757,000 | £ 5,185,000 | |||
Fixed interest rate | Senior secured notes | ||||||
Disclosure of detailed information about borrowings | ||||||
Borrowings, interest rate | 3.79% | 3.79% | ||||
Floating interest rate | Secured term loan facility | ||||||
Disclosure of detailed information about borrowings | ||||||
Borrowings, interest rate basis | US dollar LIBOR | |||||
Minimum | Floating interest rate | Secured term loan facility | ||||||
Disclosure of detailed information about borrowings | ||||||
Adjustment to interest rate basis | 1.25% | 1.25% | ||||
Maximum | Floating interest rate | Secured term loan facility | ||||||
Disclosure of detailed information about borrowings | ||||||
Adjustment to interest rate basis | 1.75% | 1.75% |
Provisions - Movement (Details)
Provisions - Movement (Details) - GBP (£) £ in Thousands | 6 Months Ended | ||
Dec. 31, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | |
Movements in provisions | |||
Opening balance | £ 12,644 | £ 5,359 | £ 4,802 |
Reassessment of provisions | 68 | 1,551 | |
Additional provisions recognized | 291 | 5,734 | 557 |
Closing balance | 13,003 | 12,644 | 5,359 |
Non-current provisions | (89) | (11,586) | (4,589) |
Current provisions | 12,914 | 1,058 | 770 |
Other provision | |||
Movements in provisions | |||
Opening balance | 1,143 | 851 | 722 |
Reassessment of provisions | 97 | 292 | |
Additional provisions recognized | 129 | ||
Closing balance | 1,240 | 1,143 | 851 |
Non-current provisions | (89) | ||
Current provisions | £ 1,151 | ||
Other provision | Minimum | |||
Movements in provisions | |||
Remaining term on leased properties | 3 months | ||
Other provision | Maximum | |||
Movements in provisions | |||
Remaining term on leased properties | 15 months | ||
Tax | |||
Movements in provisions | |||
Opening balance | £ 11,501 | 4,508 | 4,080 |
Reassessment of provisions | (29) | 1,259 | |
Additional provisions recognized | 291 | 5,734 | 428 |
Closing balance | 11,763 | £ 11,501 | £ 4,508 |
Current provisions | £ 11,763 |
Cash (used in)_generated from_3
Cash (used in)/generated from operations (Details) - GBP (£) £ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash (used in)/generated from operations | ||||
Profit/(loss) before income tax | £ 9,255 | £ (2,067) | £ (25,115) | £ (21,887) |
Depreciation | 3,609 | 3,579 | 7,087 | 7,270 |
Amortization | 44,971 | 38,653 | 85,110 | 73,787 |
Loss/(profit) on disposal of intangible assets | 2,588 | 318 | (14,020) | (17,158) |
Net finance (income)/costs | (12,115) | 7,472 | 18,873 | 17,126 |
Non-cash employee benefit expense - equity-settled share-based payments | 626 | 433 | 1,155 | 968 |
Foreign exchange losses/(gains) on operating activities | 5,140 | (398) | 3,967 | (302) |
Reclassified from hedging reserve | (367) | 90 | (530) | 30 |
Changes in working capital: | ||||
Inventories | 480 | (105) | (1,072) | (796) |
Prepayments | 4,638 | 4,776 | (10,928) | (13,751) |
Contract assets - accrued revenue | (7,366) | (34,471) | (17,266) | (29,284) |
Trade receivables | (64,070) | (5,832) | (48,087) | (5,541) |
Other receivables | (497) | 151 | (857) | (650) |
Contract liabilities - deferred revenue | (23,898) | (25,963) | (14,716) | 39,615 |
Trade and other payables | (19,821) | (12,532) | (36,974) | (3,864) |
Provisions | 194 | 329 | 359 | 557 |
Cash (used in)/generated from operations | £ (56,633) | £ (25,567) | £ (53,014) | £ 46,120 |
Pension arrangements (Details)
Pension arrangements (Details) - Football League Pension and Life Assurance Scheme - GBP (£) | 1 Months Ended | 6 Months Ended | |||
Sep. 30, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | Aug. 31, 2020 | |
Pension arrangements | |||||
Total deficit on actuarial valuation | £ 27,500,000 | ||||
Contribution to current accrual of benefits | £ 0 | ||||
Total contributions paid by Group based on actuarial valuation | 555,000 | ||||
Percentage of increase in contributions | 5% | ||||
Present value of outstanding contributions to pension arrangements | 1,332,000 | ||||
Within 1 year | |||||
Pension arrangements | |||||
Present value of outstanding contributions to pension arrangements | 555,000 | £ 556,000 | £ 533,000 | ||
Due after 1 year | |||||
Pension arrangements | |||||
Present value of outstanding contributions to pension arrangements | £ 777,000 | £ 1,046,000 | £ 1,332,000 |
Financial risk management - Hed
Financial risk management - Hedging activities (Details) $ in Thousands | Dec. 31, 2022 USD ($) $ / £ | Jun. 30, 2022 USD ($) $ / £ | Dec. 31, 2021 USD ($) $ / £ |
Financial risk management activities | |||
Closing exchange rate | $ / £ | 1.2040 | 1.2151 | 1.3486 |
US dollar | |||
Financial risk management activities | |||
Net debt | $ 641,100 | $ 613,000 | $ 636,977 |
Hedged future revenues | (50,780) | (22,800) | (34,124) |
Unhedged borrowings | 590,320 | 590,200 | 602,853 |
Borrowings | US dollar | |||
Financial risk management activities | |||
Net debt | 650,000 | 650,000 | 650,000 |
Cash and cash equivalents | US dollar | |||
Financial risk management activities | |||
Net debt | $ (8,900) | $ (37,000) | $ (13,023) |
Financial risk management - Swa
Financial risk management - Swaps (Details) - Interest rate swap $ in Thousands | 6 Months Ended | 12 Months Ended | |
Dec. 31, 2022 GBP (£) USD ($) | Dec. 31, 2021 GBP (£) USD ($) | Jun. 30, 2022 GBP (£) USD ($) | |
Financial risk management activities | |||
Fair value of interest rate swaps, asset | £ 4,901,000 | £ 2,458,000 | |
Fair value of interest rate swaps, liability | £ 3,045,000 | ||
Long position | |||
Financial risk management activities | |||
Principal value of loan outstanding | $ | 150,000 | 150,000 | 150,000 |
Rate received | 1 month $ LIBOR | 1 month $ LIBOR | 1 month $ LIBOR |
Rate paid | 2.032% | 2.032% | 2.032% |
Contingent liabilities and co_3
Contingent liabilities and contingent assets (Details) - GBP (£) | Dec. 31, 2022 | Jun. 30, 2022 | Dec. 31, 2021 |
Transfer fees | |||
Additional fees payable, first team squad | £ 126,793,000 | ||
Additional fees payable, other | 14,304,000 | ||
Additional fees payable | 141,097,000 | £ 112,372,000 | £ 122,604,000 |
Probable effect of contingent assets | 0 | £ 0 | £ 0 |
MUFC appearances/team success/new contract | |||
Transfer fees | |||
Additional fees payable, first team squad | 83,369,000 | ||
Additional fees payable, other | 13,222,000 | ||
Additional fees payable | 96,591,000 | ||
International appearances | |||
Transfer fees | |||
Additional fees payable, first team squad | 10,444,000 | ||
Additional fees payable, other | 1,082,000 | ||
Additional fees payable | 11,526,000 | ||
Awards | |||
Transfer fees | |||
Additional fees payable, first team squad | 32,980,000 | ||
Additional fees payable | £ 32,980,000 |
Commitments - Capital commitmen
Commitments - Capital commitments (Details) - GBP (£) | Dec. 31, 2022 | Jun. 30, 2022 | Dec. 31, 2021 |
Property, plant and equipment | |||
Capital commitments | |||
Capital commitments | £ 2,090,000 | £ 1,185,000 | £ 1,437,000 |
Other intangible assets | |||
Capital commitments | |||
Capital commitments | £ 192,000 | £ 1,476,000 | £ 472,000 |
Events occurring after the re_2
Events occurring after the reporting period (Details) - GBP (£) | 3 Months Ended | 6 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Events occurring after the reporting date | |||
Additions or extensions of intangible assets | £ 222,171,000 | £ 145,846,000 | |
Registrations | |||
Events occurring after the reporting date | |||
Additions or extensions of intangible assets | £ 221,472,000 | £ 144,302,000 | |
Disposal of playing registrations | Registrations | |||
Events occurring after the reporting date | |||
Solidarity contributions, training compensation, sell-on fees and contingent consideration receivable | £ 13,000 | ||
Acquisition or extension of playing registrations | Registrations | |||
Events occurring after the reporting date | |||
Additions or extensions of intangible assets | 10,384,000 | ||
Sell-on fees and contingent consideration payable | £ 917,000 |
Related party transactions (Det
Related party transactions (Details) - Trusts and other entities controlled by descendants of Malcolm Glazer | Dec. 31, 2022 item |
Related party transactions | |
Number of lineal descendants of Mr. Malcolm Glazer | 6 |
Voting power on outstanding capital stock (as a percent) | 95.62% |
Class A ordinary shares | |
Related party transactions | |
Ownership interest on issued and outstanding ordinary shares (as a percent) | 4.37% |
Class B ordinary shares | |
Related party transactions | |
Ownership interest on issued and outstanding ordinary shares (as a percent) | 100% |
Subsidiaries (Details)
Subsidiaries (Details) | Dec. 31, 2021 |
Red Football Finance Limited | |
Subsidiaries | |
Percentage of ownership interest | 100% |
Red Football Holdings Limited | |
Subsidiaries | |
Percentage of ownership interest | 100% |
Red Football Shareholder Limited | |
Subsidiaries | |
Percentage of ownership interest | 100% |
Red Football Joint Venture Limited | |
Subsidiaries | |
Percentage of ownership interest | 100% |
Red Football Limited | |
Subsidiaries | |
Percentage of ownership interest | 100% |
Red Football Junior Limited | |
Subsidiaries | |
Percentage of ownership interest | 100% |
Manchester United Limited | |
Subsidiaries | |
Percentage of ownership interest | 100% |
Alderley Urban Investments Limited | |
Subsidiaries | |
Percentage of ownership interest | 100% |
Manchester United Football Club Limited | |
Subsidiaries | |
Percentage of ownership interest | 100% |
Manchester United Women's Football Club Limited | |
Subsidiaries | |
Percentage of ownership interest | 100% |
Manchester United Interactive Limited | |
Subsidiaries | |
Percentage of ownership interest | 100% |
MU 099 Limited | |
Subsidiaries | |
Percentage of ownership interest | 100% |
MU Commercial Holdings Limited | |
Subsidiaries | |
Percentage of ownership interest | 100% |
MU Commercial Holdings Junior Limited | |
Subsidiaries | |
Percentage of ownership interest | 100% |
MU Finance Limited | |
Subsidiaries | |
Percentage of ownership interest | 100% |
MU RAML Limited | |
Subsidiaries | |
Percentage of ownership interest | 100% |
MUTV Limited | |
Subsidiaries | |
Percentage of ownership interest | 100% |
RAML USA LLC | |
Subsidiaries | |
Percentage of ownership interest | 100% |