United Profits Triple - 28/01/2007

Manchester United's first financial results since it was taken private by the Glazer family reveal pre-tax profits for the 12 months to June 2006 of £30.8m, almost tripled from £10.8m. Turnover went up from £157.2m to £165.4m, although merchandising and media partnerships boost the figure to well over £200m. United is reaping the benefits of its stadium capacity expansion to 76,000. It sold 64,000 season tickets last year and has a waiting list of 10,000. The club's recod shirt sponsorship deal with AIG is worth £14m a year and it is building up sponsorship deals in various parts of the lucrative south-east Asia market with companies such as Air Asia/Tourism Malayasia. Chief executive David Gill is forecasting 'dramatic growth' over the next two years. There is little or no prospect of more ground expansion at Old Trafford, so the focus is on exploiting revenue-producing opportunities associated with the ground or 'venue'.

The Glazers have become much more hands on and are closely involved in key appointments such as the new chief operating officer and commercial director, to be announced shortly. 'They don't interfere, they are interested, particularly in areas they can add value', the chief executive said. Even after last year's refinancing, the club remains indebted to the tune of more than £600m. But Mr Gill insists, 'This is a very well-structured debt and all obligations can be met.' He would like to see professional footballers paid for performance with a lower basic salary and City-style bonuses. However, a salary scheme that rewarded players for winning games and performing well individually is unlikely to be introduced at Old Trafford any time soon.