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Manchester United's half-year profits have more than halved, hit by falling television income and the cost of buying new players. Pre-tax profits for the six months to 31 January were down from £26.8m to £12.4m. Media revenue in the first half fell 28 per cent to £24.2m. Income from television has been hit by the new Premiership contract with BSkyB. The club says that it expects to suffer an £8m drop in revenues over the year. However, the fall in media revenues was offset by a 22 per cent climb in matchday revenues to £44.3m. When commercial revenues are factored in, overall sales fell only 0.9 per cent from £92.4m to £91.6m. Player signings and new contracts for Sir Alex Ferguson and Ruud van Nistelrooy increased the club's wage bill by £5m to £42.7m. This was the equivalent of 46.6 per cent of sales compared to 40.8 per cent a year ago, still below the 50 per cent maximum level recommended by accountants Deloitte Touche. With revenue from the Champions League down £5.8m on the same period a year earlier, the pressure will be on Sir Alex Ferguston to improve performance on the pitch. Indeed, chief executive David Gill has admitted that Ferguson is not 'unsackable'. These results are unlikely to deter a bid for the club from Malcolm Glazer. Indeed, they may reinforce his belief that he could do better.
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