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Revenue from contracts with customers

6 Months Ended

Dec. 31, 2023

Revenue from contracts with customers

Revenue from contracts with customers

6Revenue from contracts with customers

6.1Disaggregation 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
		2023		2022		2023		2022
		£’000		£’000		£’000		£’000
Sponsorship		39,156		50,423		95,322		108,234
Retail, merchandising, apparel & product licensing		32,606		28,266		66,821		57,843
Commercial		71,762		78,689		162,143		166,077
Domestic competitions		59,734		44,399		89,678		72,026
European competitions		45,177		12,895		52,692		18,582
Other		1,529		1,495		3,417		3,184
Broadcasting		106,440		58,789		145,787		93,792
Matchday		47,554		29,890		74,922		51,153
		225,756		167,368		382,852		311,022

6.2Assets 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 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
Recognized in revenue during the period		38,818
Cash received/amounts invoiced during the period		(48,991)
At 30 June 2023		43,332
Recognized in revenue during the period		105,882
Cash received/amounts invoiced during the period		(87,395)
At 31 December 2023		61,819

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.

6Revenue from contracts with customers (continued)

6.2Assets and liabilities related to contracts with customers (continued)

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 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)
Recognized in revenue during the period		141,292		—		141,292
Cash received/amounts invoiced during the period		(149,747)		—		(149,747)
Reclassified to current during the period		(615)		615		—
At 30 June 2023		(169,624)		(6,659)		(176,283)
Recognized in revenue during the period		134,384		—		134,384
Cash received/amounts invoiced during the period		(115,803)		—		(115,803)
Reclassified to current during the period		1,400		(1,400)		—
At 31 December 2023		(149,643)		(8,059)		(157,702)

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.