Manchester United Financial Thread

Manchester United stay top of UK football rich list - but City drop one place | Manchester Evening News - menmedia.co.uk

Manchester United today retained its place as Britain's richest football club, while rivals City dropped one place in the rankings.

With annual revenues of £331.4m, United is the highest-placed domestic club in the Europe-wide Football Money League, compiled by the Manchester office of accountants and business advisers Deloitte.

The figure dwarfed City's income of £153.2m which, despite having grown year-on-year by £28m, saw it slip below Tottenham Hotspur and German side Schalke 04 in the rankings.

But the Blues are tipped to break into the top 10 next season, due to the lucrative sponsorship deal the club has signed with airline Etihad and the fact it competed in the Champions League this season.

United finished third in the overall table behind Spanish giants Real Madrid and Barcelona, which had revenues of £433m and £407m respectively.

Liverpool came ninth, with a 2010/11 turnover of £183.6m, with Arsenal fifth on £226.8m and Chelsea sixth with £225.6m.

The Red Devils' turnover grew year-on-year by £45m, driven by a series of lucrative sponsorship deals, which led to commercial revenues breaking the £100m barrier for the first time.

But the club was still unable to catch the Spanish sides, largely due to the fact they have the ability to negotiate their own television rights deals, while Premier League agreements are sold collectively.

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LONDON (Reuters) - English Premier League football champions Manchester United reported an increase of almost eight percent in first half earnings on Tuesday, boosted by strong increases in commercial and media revenues.

United, the most successful club in the English game, said EBITDA (earnings before tax, interest, depreciation and amortisation) increased by 7.7 percent to 64.2 million pounds in the six months to the end of December.

United put plans for a $1 billion (632 million pound) flotation in Singapore on hold last September because of volatility in global markets.

The American Glazer family, who bought the club in 2005, had been expected to use some of the proceeds from the listing to bring down debt that supporters believe has held back United.

Gross debt was 439 million pounds as of the end-December, down from 508 million pounds a year earlier.

United are currently second in the English Premier League, behind local rivals Manchester City who have spent heavily on players thanks to the backing of their owners from Abu Dhabi.

Total revenue grew to 175 million pounds in the period, up by 11.8 percent. Media revenues contributed 60.9 million pounds, up 13 percent, while commercial revenues rose 16 percent to 58.6 million pounds, both totals exceeding matchday revenues.

United's second half performance is certain to be hit by their early exit from the Champions League this season after they reached the final last May.

They have also been eliminated from the FA Cup, the main domestic knockout competition.

LONDON (AP) -Manchester United's cash reserves fell by nearly 100 million pounds ($158 million) in six months partially to finance an investment in the squad that is failing to maintain the English champions' dominance on the pitch.

The team's cash balance dropped from 150.6 to 50.9 million pounds to Dec. 31 as a result of spending that also took in stadium improvements and a bond repurchase program.

But United exited the Champions League early and neighbor Manchester City is establishing itself as the Premier League's new force.

However, United's moneymaking abilities appear to be undiminished, with 175 million pounds generated in the six months to Dec. 31 - up more than 10 percent on the same period a year earlier.

United's debt was 439 million pounds, a drop from a year earlier but a six million-pound rise since Sept. 31.

From Sky Sports...

The reason behind the decrease in the club's debt is because United have bought back some of the bonds that were sold as part of a £500million refinancing exercise at the start of 2010.

United also reported that total operating costs rose sharply from £96.9million to £110.8million.

Net player capital expenditure jumped from £11.7million to £47.9million due to the summer signings of David de Gea, Ashley Young and Phil Jones and general capital expenditure rose by £10.4million, thanks partly due to the cost of refurbishment of the club's hospitality boxes at Old Trafford.

The figures show the Red Devils currently have a bank balance of £50.9million.

Scholes and Giggs offered extensions, to be followed by Rio, Evra...., Carrick, Park... in the future. All one big family, and intact.

MUST News

MEDIA RELEASE: MUFC Q2 results - Glazers have spent all of the Ronaldo money buying their own debt
In response to the Manchester United Q2 financial results revealed today a Manchester United Supporters' Trust (MUST) spokesperson said:

"Manchester United revenues continue to grow strongly although costs are increasing just as quickly so pretty much negating that growth. However the key figures of interest to supporters show the Glazers have now spent every penny of the money received from the sale of Ronaldo, and more. That's now £92.8m spent on buying back their own bond debt that they loaded onto our club. So statements at the time that all of the Ronaldo money would be made available for reinvestment were clearly just spin."

"Since the sale of Ronaldo (30th June 2009) net transfers (not including Ronaldo) have totalled just £90m while they have taken out of the club £225m to cover their debt payments and interest. What could the club have done with that extra £225m? Cheaper tickets for loyal fans, investing massively in the squad and stadium, developing and retaining the best youth players, competing on an equal basis with the very best teams in Europe. This is the true cost to Manchester United of the Glazers ownership."