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Utd report £48m profit
(sorry if already posted!)
http://www.sportinglife.com/football...&TEAMHD=soccer Manchester United have reported pre-tax profits of £48.2million for the year to June 30. The figure includes the world record £80m fee collected from Real Madrid for the sale of Cristiano Ronaldo and also £41.9m paid out in interest on a mammoth loan of £509.5m. Turnover was also up, from £80.4m in 2008 to £91.3m a year later. The figures were released on a morning when United officially confirmed their intention to raise £500million through bonds in order to refinance their debts. While United are at least in profit once more, the figures merely emphasise what a drain on resources their debt position is. Without the sale of Ronaldo, the Red Devils would have been reporting a loss of £31.8million, a situation that clearly is unsustainable over the long term, hence the Glazers' refinancing plans. "Manchester United today announced that it will be seeking to raise approximately £500million aggregate principal amount from an offering of senior secured notes due 2017," said a United statement. "The notes, whose proceeds will be used to refinance existing debt secured against the club, will be issued by MU Finance plc." Because the "senior secured notes" will be used to pay off the club debt, they will not touch the controversial £175million worth of payment-in-kind notes that are currently attracting 14.25% interest. They are the Glazers' personal debt, so another avenue will presumably be pursued to try and reduce that interest, which is rolling up annually at a staggering rate. In stark contrast to the days when United were a successful PLC and offered plenty of financial information on a six-monthly basis, including being a forerunner in stating what agents' fees they had paid out, now there is no financial requirement to do so, it is kept to a minimum. Clearly though, there are areas of improvement, including confirmation that American finance giant Aon will be new shirt sponsors next season, while more sponsorship deals have been announced, underlining the massive attraction United remain across the globe. Yet many supporters remain concerned about the financial structures underpinning the club, even if as recently as Friday, Sir Alex Ferguson tried to quell any fears, insisting the decision not to spend three-quarters of the cash received for Ronaldo was his alone. "I don't have any concerns about the financial situation," he said. "There is absolutely no issue at all. I am really confident about that. "Concerns of the supporters are down to the fact that I haven't moved in the transfer market. But that is nothing to do with the Glazers or with David Gill. "It is simply because I am not going to pay £50million for a striker who is not worth it." nft. |
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Re: Utd report £48m profit
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Re: Utd report £48m profit
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Surely that will include another CL Final, Winnings from Tokyo etc. Last season overall we had a brilliant one, and wont be anywhere near it again. This indeed proves that the worry from the fans is genuine, the club financially are in a complete and utter mess, the refinancing will certainly in the short term improve matters but longterm the issue is still there. Were'nt they interested in selling the bucs? With them doing so will that money be used to pay off the loan? |
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Re: Utd report £48m profit
This is pre-tax profit. So there is still a tax bill to pay to make this figure worse ?
Is it a bit odd to be announcing this figure as a pre-tax profit but after paying interest apparently ? In recent years they seem to have trumpeted their EBITDA profit ie before tax and before interest payments have been taken off. |
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Good job we sold Ronaldo otherwise we would of reported over £30mil loss and that's with a succesful season! |
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utd are going to have to sell at least £30m of players every season to break even. nft. |
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