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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.