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
    0

    Comment number 48.

    I am a United fan 50 years and no I don't like the debt but I also accept that one day Ferguson will leave as do other great managers from other great clubs. Ferguson is a great manager but he manages great players. When he goes his successor will probably inherit a great team. and life will go on. Yes it might be a bit shaky but name me one club where the transition has been perfectly smoothe

  • 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 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
    +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.

 
 

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