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Revenue from contracts with customers

6 Months Ended

Dec. 31, 2024

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 non-current assets, other than US deferred tax assets, are held within the United Kingdom. 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
		2024		2023		2024		2023
		£’000		£’000		£’000		£’000
Sponsorship		42,949		39,156		94,709		95,322
Retail, merchandising, apparel & product licensing		42,129		32,606		75,647		66,821
Commercial		85,078		71,762		170,356		162,143
Domestic competitions		49,700		59,734		76,780		89,678
European competitions		10,802		45,177		12,773		52,692
Other		1,160		1,529		3,369		3,417
Broadcasting		61,662		106,440		92,922		145,787
Matchday		51,960		47,554		78,487		74,922
		198,700		225,756		341,765		382,852

6Revenue from contracts with customers (continued)

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 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
Recognized in revenue during the period		38,994
Cash received/amounts invoiced during the period		(61,035)
At 30 June 2024		39,778
Recognized in revenue during the period		94,657
Cash received/amounts invoiced during the period		(74,588)
At 31 December 2024		59,847

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 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 non-current during the period		1,400		(1,400)		—
At 31 December 2023		(149,643)		(8,059)		(157,702)
Recognized in revenue during the period		126,256		—		126,256
Cash received/amounts invoiced during the period		(172,529)		—		(172,529)
Reclassified to current during the period		(2,712)		2,712		—
At 30 June 2024		(198,628)		(5,347)		(203,975)
Recognized in revenue during the period		146,080		—		146,080
Cash received/amounts invoiced during the period		(111,975)		—		(111,975)
Reclassified to current during the period		(1,201)		1,201		—
At 31 December 2024		(165,724)		(4,146)		(169,870)

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.