Manchester United reports £110.9m operating profit

 
Wayne Rooney scores from a free-kick against Arsenal Manchester United are top of the Premier League table

Manchester United has reported a record annual operating profit of £110.9m.

Revenue rose to £334.1m for the year to the end of June 2011, also a record, up £45m on the previous year. Headline pre-tax profit came in at £29.7m, compared with a loss last year.

The football club is preparing a partial flotation on the Singapore Stock Exchange to raise up to £600m.

Last season, Manchester United won the Premier League and reached the final of the Champions League against Barcelona.

Turnover in all three major areas of the business increased against a year earlier, with matchday revenue rising to £108.6m from £100.2m, media revenue climbing to £119.4 from £104.8m, and commercial revenue growing to £103.4m from £81.4m.

The club was bought by the US-based Glazer family for £800m in 2005.

Critics say the family has saddled the club with massive debts, which led to high-profile protests by supporters' groups last season.

The latest figures show that net debt has fallen to £308.3m, down from £376.9m a year earlier.

Vietnam deal

Earlier this month, and after the period covered by the latest set of accounts, the club signed two new commercial deals.

One saw logistics company DHL becoming the club's first training kit sponsor, in a four-year deal the BBC understands is worth £40m to the club.

Manchester United also signed a deal with Vietnamese mobile phone group Beeline, with the club having an estimated 16 million fans in the South East Asian country.

In March, Manchester United's parent company said it had made a loss of £108.9m in 2009-10. Red Football Joint Venture is the Glazer family parent company that owns the Old Trafford club.

Its loss, for the year to the end of July 2010, included one-off costs from setting up a £526m bond scheme last January to replace outstanding debts of £509m.

 

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  • rate this
    +12

    Comment number 45.

    ""Operating Profits" also known as "earnings BEFORE interest and tax".
    You should ask them what their actual profits were...."

    Sadly, this is the sort of level to which BBC journalism has sunk - regurgitated press releases - its an outrage but try complaining and see where that gets you!

  • rate this
    +2

    Comment number 44.

    25.Vestan_Pance
    I hope Citeh & Chelsea fans realise that this is how Man Utd fund their success. No rich benefactors are plunging £billions into the club.
    --

    The opinion of Utd 'fans' is scarcely relevant to real supporters

    Incidentally, could United fans all look out of their windows and give weather reports for Torquay, London, Belfast and Singapore please?

  • rate this
    0

    Comment number 43.

    Is this an article? it looks more like a statement of facts. It might as well be a bullet point list.

    This article reads "Look, Manchester United" then some facts. Any chance of an analysis or something? The 140 character comments are more interesting to read

  • rate this
    -4

    Comment number 42.

    People still don't get it. They are talking about "floating" part of Man United for over £600 million. Would you invest that sort of money in a company that relies on the health of an one old aged pensioner. Ferguson is the best at what he does but you don't get how fragile the finances are at United.Ask any United fan, they hate the debt and fear having the debt and no Alex Ferguson.

  • rate this
    0

    Comment number 41.

    Trading1, economically sound, debatable. Well run, maybe, do you mean as a football team or a business? Best manager yes, best players no. Best team in EPL, yes. Best club in terms of success, debatable. Best stadium, not a chance. not even in the top 3 in uk or top 5 in europe. Happiest plastics in the last 20yrs and yes happiest real fans in the last 20 years. Just being realistic.

  • rate this
    0

    Comment number 40.

    SeeDubya
    'Where has the extra £200 million magically appeared from?'
    It hasn't. The loss was of the parent company, who may well make a loss this year too after servicing debts. I'm sure there will be minimal profits on which to pay taxes, anyway...

  • rate this
    0

    Comment number 39.

    Tony Martin "Since we started this, Fergie has aged another 30 minutes. Tick, tock, tick, tock"
    If that's all you've got to rely on then you really are a desperately sad individual!

  • rate this
    0

    Comment number 38.

    Football teams should be a not-for-profit venture with season ticket holders as the shareholders.

    Any money left over after paying debts, stadium improvements etc. can be given back to the fans.

  • rate this
    0

    Comment number 37.

    Should be able to buy a couple of players with that then.

  • rate this
    +4

    Comment number 36.

    Of course, this is £111m profit before servicing any debt liabilities. In other words, Manchester United's success is paying off the Glazer's loans.

    You have to admit, regardless of your feelings for the club, that that's a seriously clever bit of business, especially in this tough financial climate.

  • rate this
    +5

    Comment number 35.

    With my cynical head on. Have they some how managed to 'manipulate' the figures to make Utd look a better investment opportunity for when they flooat part of the club on the stock markets?
    Also don't understand how if club value 1.6b how can minority float generate 1b? If I was involved with Utd I would be worried, just too many things that don't quite add up.

  • rate this
    +1

    Comment number 34.

    Economically sound, well run, best manager, best players, best club in terms of success, most valuable, best stadium, buy well, sell well and the happiest fans over the past 20+ years! That concludes me to say Manchester United is the The best Football Club in the world, unlike Manhester City who will only be closest to them in one sense - location.

  • rate this
    -4

    Comment number 33.

    Net assets for the group are minus 61 million - they owe almost 1 billion... is all they own worth that much?

  • rate this
    -4

    Comment number 32.

    The gap between Busby and Ferguson was over 25 years. In that period United were relegated and had to watch other teams like Liverpool rule the roost. Since we started this, Fergie has aged another 30 minutes. Tick, tock, tick, tock.

  • rate this
    -1

    Comment number 31.

    10. Tony Martin
    United's big problem is that Ferguson is 70 this year. How do you follow the best manager in the world. The answer is that whoever they get can't be as good, because they will always be second best to Ferguson. The clock is ticking
    ....and when Ferguson came in he was in Matt Busby's Shadow. There will one day be another manager who may be as good and maybe better nobody knows.

  • rate this
    0

    Comment number 30.

    Wow...I'm a Man United fan, but I'm wondering why this is worthy of a HYS article. Has it become normal to comment on the finances of private companies in public, now?

  • rate this
    +8

    Comment number 29.

    "Operating Profits" also known as "earnings BEFORE interest and tax".
    You should ask them what their actual profits were....

  • rate this
    +1

    Comment number 28.

    I'm not a financial wizard but as I understand it, Utd made 110m but their parent company lost 108m. Does this mean that actually Utd made 2m for the year? If so the fact that it's profit for a football club is amazing but I don't think the share holders will see it as a big enough return.
    If I'm misunderstanding things, some one please explain. Ta

  • rate this
    -2

    Comment number 27.

    19. happy1feet

    I can see you don't know much about football. Pep Guardiola inherited his team and Barcelona are in worse debt than Man Utd, and Barcelona didn't have that debt put on them via a badly funded buyout.

    Pep Guardiola is not as good a manager as Sir Alex Ferguson and pretend to think he is!

  • rate this
    +3

    Comment number 26.

    Bellatori - you can not compare the finances of Man U to Leeds! If you read the article they are making a profit of 110 million. Leeds didnt even have that kind of money as their turnover never mind profit. Yes I hate to see the amount of debt but the club is in no way struggling to handle it dispute millions of pounds of interest being paid each year.
    The debt is being paid off steadily each year

 

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