Manchester United’s bank balance has fallen by almost £100m in six months, according to the club’s quarterly accounts, as a result of buying back bonds, player arrivals and stadium improvements.
The latest accounts show that while revenues continued to rise as a result of increased TV income and corporate hospitality revenue, plus new commercial contracts, higher wages contributed to sharply increased operating costs.
Manchester United’s bank balance has fallen by almost £100m in six months, according to the club’s quarterly accounts, as a result of buying back bonds, player arrivals and stadium improvements.
The latest accounts show that while revenues continued to rise as a result of increased TV income and corporate hospitality revenue, plus new commercial contracts, higher wages contributed to sharply increased operating costs.
Overall revenues in the six months to the end of 2011 increased 12 per cent to £175m from £156.5m a year earlier, driven largely by rises in media and commercial income, including a new training kit deal with DHL.
Match day revenues rose from £52.4m to £54.5m, commercial revenue increased to £56.8m from £50.4m and its media revenue rose from £53.7m to £60.9m. But operating costs rose to £110m from £96.9m. Net spending on players rose from £11.7m to £47.9m.
The club will point to investment in refurbishing hospitality boxes, which has led to an increase in income, as evidence it can go on squaring the circle of shouldering debt interest repayments while continuing to invest in the squad and facilities. Debt declined by £69m from £508m to £439m, largely due to a buyback of bonds.
The sharp fall in United’s bank balance, from £150.6m to £50.9m, over the space of six months was largely a result of the £47m net outlay on transfers in the summer and £5.3m in the most recent quarter alone spent on buying back bonds.
It is likely that the club will see a decline in revenue in the next six months as a result of their Chamoions League exit.