[Dirtycheat]

United's profits to hit £75m

MANCHESTER United is set to announce record profits of around £75m as `Gold Trafford' hits the jackpot.

A club best-ever annual turnover in excess of £200m has boosted profits in the year to June 30, figures to be released next month will reveal.

The previous record turnover for the Reds was in the 2002-03 season, with £174m in total. The previous record profit was in 2003-04, when the club netted £58m.

It is a significant increase on last January's figures, when the club announced a turnover of £167.75m and profits of £46.25m.

The hike in turnover will help the Reds close the gap on Real Madrid, the world's richest club by revenue. In this year's Deloitte Money League, the Spanish club's turnover was 292.2m euros - £208m.

United's success on the field last season and the raising of the Old Trafford capacity has banked the Reds the increased fortune. Last term saw United open their East and North quadrants at Old Trafford, adding 8,000 more seats at the stadium, including 2,500 corporate seats.

Ground capacity

It raised the ground capacity to 76,000, from just under 68,000 in the 2005-06 season, and the club was able to fill Old Trafford for most matches.

In fact only one game, against Middlesbrough in a Monday night FA Cup sixth-round replay in March, was under 70,000.

United were crowned Premiership champions in May, and derived a bumper income from that success. They also had a full FA Cup run to Wembley which included two replays against Reading and Middlesbrough, which increased the club's income.

Unlike the previous year, when the Reds were knocked out in the group stage of the lucrative Champions League, last season Sir Alex Ferguson's side progressed to its semi-final.

Part of the club's profit will be used to service the debts - around £35m a year - incurred by its American owners, the Glazer family, who took over the club in June, 2005. But it also leaves a significant amount of cash for Sir Alex Ferguson to deploy in the January and summer transfer markets.

United can probably look forward to breaking records again in its next financial year.

Season ticket prices have controversially risen this season, but - most significantly - the figures to be announced next month do not even include cash due to Old Trafford under its the new £1.7bn TV rights deal with Sky and Setanta. It will bring each Premiership club an estimated £40m a year.

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its effectively 40 million because of the 35 million to sevice debts, which i have to say i am terrified about.

i suppose ferfie wont be strapped for cash in January.

[funkdoctorspock]

35 mill a year. Whats' the debt again? 600+?

so if United dedicate 35 mill a year... 10 is 350... half is 175...

About 17 years...

Mind you if United win cups and what not, that money can be allocated to debt reduction.

Well the plus is that its great that United are turning in record profits. Just sucks that tix holders are getting price gouged.

[GocartMozart]

well you have to think of it this way, they can easily put the extra money in an escrow, and begin paying off principal in advance upon the early redemption date of the bonds. I'm assuming that's ten years from time, but considering they were planning on an early refinancing, it is probably less than 10. The more of the remaining 40 mill they spend on principal today, obviously means that you shave that much more off of the bonds later, particularly in interest.

[funkdoctorspock]

someone has a business degree...

makes sense. So they continue making there regular debt payments and any extra money they get, they can escrow it for future payments.

[macca247]

great news we got alot of class players and a big squad now so gotta keep it up
manchester united can match last year easy so lets go one better this year

[IvanDaMan]

Yeah the debt is a big nuisance but at least we are making enough money to service it and to buy a couple of player a year.. Would be nice if they could increase Old Trafford's capacity a bit more... Seems like the demand is always higher than the supply

[losangeles]

I love having the big squad, so profit is key. He!!... I received 4 items from United's store for Christmas today.

[funkdoctorspock]

This turnover is very impressive, but you know what I'm going to say next...

How much of that will go to reducing the debt United are under?

Also, why doesn't the Premier league or football in general have ONE model in which to state profits. Its obvious United, Arsenal and Real Mardid as examples all have different models into calculating who had the highest turnover.

As much as I want to say congrats to United, they need to either service the debt or give the fans a ticket reprieve to some upcoming games or season tickets next campaign.

UNITED are set to announce a massive increase in turnover to £245million later this week.

The Reds have cashed in on an outstanding season, during which they ended a four-year drought by lifting the Premier League title, only lost out to AC Milan in the Champions League semi-finals and were beaten by Chelsea in the FA Cup final.

Slightly irritated by Arsenal's bullish claim to be the richest club in England when they reported turnover of £201million in September, United have also factored in revenue from the long-term contract with shirt manufacturers Nike, which has never previously been included.

It leaves United as unquestioned number one in England, slightly behind only Real Madrid in the global arena.

Confirmation of the £245million figure for overall business will come from Old Trafford overnight on Thursday, with the club itself reporting turnover in excess of £200million for its core football activities.

It is also expected United will continue to buck the Premier League trend of not disclosing agents' fees by releasing the overall figure it has spent on agents.

Although this is a step back from previous policy of detailing the fees involved in each transaction, United chief executive David Gill had warned the club may no longer detail payments to agents at all if the club's top flight rivals did not follow suit.

Gill will certainly be satisfied with the overall results, which are expected to confirm the highest profit figure ever recorded by an English club, which may go some way to easing the widespread concerns of many fans over the debt incurred during Malcolm Glazer's controversial takeover in 2005.

It has also allowed the club to reduce its wages-turnover ratio to 43.6%, well within the 50% limit set by the Glazer family as a long-term aim.

With a new TV deal currently in place and United going well in both the Premier League and Europe, plus securing a place in the FA Cup fourth round at Aston Villa on Saturday, there is even scope for improvement this season, especially if new commercial director Richard Arnold can capitalise on a fan base now estimated at 333 million according to market research company TNS Sport.
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[Alex]

From the BBC:

Manchester United have moved to the top of the UK's football financial league after reporting record turnover for 2006/07 of £245m ($481m), a 27% rise.

That puts them ahead of the £200.8m reported by Arsenal for last season, but behind Real Madrid of Spain, whose turnover was £263m for the same period.

Pre-tax profits rose 93% to £59.6m, as United won the Premier League.

The club, which says it has 333 million fans worldwide, also reached the FA Cup final and Champions League semi-final.

Those cup runs, during the second year of the Glazer family's ownership, helped to boost media revenues by 35% to £61.5m.

An update on the club's debt and interest repayments - the Glazer family borrowed heavily to buy the club for £790m in 2005 - will be made in the spring when the Glazer company accounts for Red Football are lodged.

Last May the annual interest payment was £62m, and in the autumn a club spokesman said debts continued "to be comfortably serviced by the business".

'Quest for success'

Chief executive David Gill said full houses at Old Trafford, plus the increases in media and sponsorship revenues "combined with team success to produce a substantial financial improvement".

"I am confident that the uplift in the Premier League television deal, together with our new sponsorship sales structure will enable the club to continue to increase its revenues and profitability to provide support to the team's quest for further on-field success," Mr Gill added.

Details of the new sponsorship structure, driven by the recently appointed commercial director Richard Arnold, have not been revealed.

But a spokesman said the club was looking forward to improved financial figures next year - when the results of an improved TV deal will come into effect - on the proviso that there is continued success on the playing field.

Manchester United once again disclosed the total payments made in the year to players' agents - £2.1m in 2006/07 as against £1.8m the previous season.

The club said it was the only one in the Premier League to reveal its payments to agents, and said other top flight teams should follow suit.

Wage payments

The extra seats afforded to Arsenal following its move from Highbury to the Emirates Stadium had been instrumental in the large rise in the club's turnover, as matchday revenues boomed.

At Manchester United matchday revenues were up 30% to £92.6m, reflecting the expansion of Old Trafford to a larger capacity of more than 76,000.

The £245m turnover figure is for its overall business, but Manchester United points out that more than £200m of that figure was for its core football activities.

The club said it had reduced its wages-to-turnover ratio to 43.6%, well within the 50% set by the Glazer family as a long-term aim.


This definately should help Sir Alex in the summer!

[wazza10]

we are the best from the best and we have always have been...it's good to see United being nr 1 at everything....we are MANCHESTER UNITED the biggest football team Britain has ever produced