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May 17, 2012

Utd benefit from increased sponsorship

Manchester United's increased sponsorship income of £3.5 million helped compensate for the loss of revenue caused by the club's poor Champions League and FA Cup campaigns.

United were finalists in the Champions League in 2008, 2009 and 2011 but surprisingly failed to emerge from the group stage in this season's competition. In the FA Cup, having seen off Manchester City, they were defeated by Liverpool in the fourth round.

In the three-month period leading up to March 31 in 2011 the club had made £75.2 million but the latest quarterly results for the same period in 2012 show a drop of £4.4 million. A 9.9% wage increase compared to last year also contributed to the dip.

However, a £3.5 million sponsorship increase helped to cushion the blow and United remain on course for an impressive revenue increase over the season as a whole, with revenues over the nine-month period standing at £245.8 million as compared to last year's £231.6 million.

"This increase largely relates to growth in player remuneration, driven by new player acquisitions and further contractual negotiations together with increased costs and headcount arising from the continued growth in our sponsorship and commercial operations," United's quarterly financial report read.

"Media income has been impacted by our exit from the UCL, thus no Round of 16 match played and our subsequent participation in the UEL [Europa League], for which, despite one extra game, the income per game is lower than for the UCL. In addition, we earned lower revenues for the FA Cup in 2011/12 due to our fourth-round exit, compared with reaching the semi-final in 2010/11."

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