Manchester United generated operating profits of £100.8m in the year to 30 June, the first Premier League club to break through the £100m barrier. New commercial deals helped to push revenues up by 2.9 per cent to £286.4m. Commercial revenues now make up 28.9 per cent of income, but match day revenues were down 7.9 per cent to £108.8m and now represent 35 per cent of turnover.
Manchester United generated operating profits of £100.8m in the year to 30 June, the first Premier League club to break through the £100m barrier. New commercial deals helped to push revenues up by 2.9 per cent to £286.4m. Commercial revenues now make up 28.9 per cent of income, but match day revenues were down 7.9 per cent to £108.8m and now represent 35 per cent of turnover.
However, the club made an annual pre-tax loss of £79.6m. This compares with a £48m profit the previous year when Cristiano Ronaldo was sold for £80m. The results show just how profitable the club could be if it wasn’t for the burden of debt it carries. Gross debt has risen from £514.5m to £521.7m.
Interest payments of £40m were due on the debt. This does not include £200m of PIK loans taken out by the Glazer family to buy the club. There were also one-off financing charges of £67m which relate to a £500m bond issue in January.
United chief executive David Gill claimed that the club were covering their financing costs more than adequately. He pointed to £165m cash in the bank. However, the anger of fans is likely to be aroused by this reminder of the club’s indebted position. Supporters’ groups nevertheless seem resigned to the fact that the Glazers are going to be at United for the foreseeable future.