Debt: Manchester United Profits



Manchester United reported an annual profit from operations of £110.9 million this year. The overall revenue was £334.1 million for the year, £45 million higher than the year before. Commercial revenue was £103.4 million.

In addition, the club is hoping to raise as much as £600 million by using a partial flotation on the Singapore Stock Exchange.

Successful Season

Manchester United won the Premier League and made it to the final of the Champions League at Wembley. They played against Barcelona. This was their success in the 2010-2011 season. The club is one of the country’s most popular, and has been known worldwide for its excellent performances this past season.

Sir Alex Ferguson, the manager of the team, has spent a large amount of money on replenishing the team, who is getting older. The Glazer family, based in the US owns the team, and bought it for £800 million in 2005. The family has gotten the football club into massive debt, leading to several protests by fans and supporters.

The debt has fallen £376.9 million to £308.3 million based on these profits from this year. In addition, the club signed two commercial deals this month, after the data was collected for the reports.

Commercial Deals

The first commercial deal was with the logistics company, DHL. DHL will become a training kit sponsor for the club—the first ever sponsor of this kind in fact. This four-year deal will be worth £40 million. With Vietnamese company Beeline, a mobile phone group, the football club signed another contract, as it has nearly 16 million fans in that area of Southeast Asia.

March showed a loss for the parent company of Manchester United, of £108.9 million for 2009-2010. The company, called Red Football Joint Venture owns the Old Trafford-based club. The loss included a one-off expense of £526 million, for a bond scheme to replace debts that had already existed at £509 million.

The deficit of the club, and the subsequent profits and attempts to get out of the debt, come at a time when everything is experiencing massive amounts of financial uncertainty, with the markets being volatile and government debts prevailing.

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