graphic border
Old 11th January 2010, 23:22   #1
Paul Brooks

Paul Brooks's Avatar
Join Date: Dec 2003
Location: Wheelieville, REPUBLIK OF MANCUNIA.
Posts: 11,364
Wink United are back in the black

United are back in the black

January 11, 2010

MANCHESTER United announced it will tap foreign investors for £500m to tackle its debts after accounts revealed the club had returned to profit, but only thanks to the world record sale of Ronaldo.

United yesterday posted pre-tax profits of £48.2m for the year to June 30, 2009 - compared with a £21.4m loss in 2008 - but without the £80m Real Madrid paid for Ronaldo in June, it would have lost £31.8m.

Revenues from player transfers earned United £80.7m in 2009, up from £21.8m in 2008.

The club, bought by the US-based Glazer family in 2006, had debts of £509.5m at the end of its last financial year and shelled out £41.9m in interest payments on loans alone during the period.

It will hold roadshows in Asia, the USA and Europe later this month in an effort to find buyers for £500m of secured loan notes, which the club says will be used to refinance its existing debts.

The Glazer family, which also has other sporting interests in the US, bought the club for £828m in an acquisition that was criticised by fans for being funded by borrowings.

The club’s debts include £175m borrowed from two American hedge funds controlled by the Glazers which are reported to be charging 14.25 per cent interest every year.

Manchester United Supporters’ Trust chief executive Duncan Drasdo said "This bond issue is just rearranging the deck chairs and still leaves the club with huge debts which they expect supporters to continue to fund.

“Under the Glazers ownership the club has become liable for more than £260m in interest payments alone and the latest trading statement would have shown a substantial loss were it not for the sale of Ronaldo.”

Mr Drasdo added: “It is in everyone’s interest for the Glazers to exit and make way for a new investor interested in working with the supporters to build a stronger football club and business together.”

The accounts revealed that United’s match day revenues were up at £108.8m from £101.5m.

Media revenues rose to £99.7m from £90.7m and commercial revenue generated £70m, up from £64m.

Overall turnover grew from £256.2m to £278.5m.

Sources said the club would dramatically improve its financial position and ultimately achieve lower interest payments if it eliminated an expensive and ballooning form of junior debt known as payment-in-kind notes.

Bankers say the high-profile Manchester United bond will be the first of many similar deals by companies worldwide to refinance secured loans.
Paul Brooks is offline   Reply With Quote


Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump

Similar Threads
Thread Thread Starter Forum Replies Last Post
How Bill Shankly helped rise of Manchester United TanyaT WHAT THE PAPERS SAY 0 14th March 2009 12:10
The European Trail - Red Star Belgrade - 5th February 1958 tomclare The European Trail 0 31st January 2008 17:43
The European Trail - Bilbao 2nd Leg - February 6th 1957 tomclare The European Trail 0 10th November 2005 04:34

All times are GMT +1. The time now is 18:57.

Powered by vBulletin® Version 3.8.2
Copyright ©2000 - 2021, Jelsoft Enterprises Ltd.

The views and opinions expressed on this website are those of individual members and guests of the MUST forum and not the official policies of MUST unless explicitly stated. MUST is not responsible for the content of links to external websites.

We are the official MUFC Trust, but please don't confuse us with the Glazer-owned United. Click here to understand what this means.