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Unread 11-01-2010, 11:43 AM
El Chalten
 
Thumbs down 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.
 
Unread 11-01-2010, 11:53 AM
SilverSurfer
 
Default

Quote:
Originally Posted by El Chalten
Turnover was also up, from £80.4m in 2008 to £91.3m a year later.
Well those turnover numbers are clearly wrong, they should be up in the £250m + range.
 
Unread 11-01-2010, 11:55 AM
El Chalten
 
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utd are in the shit.

all this talk of no value in the market is a £#%&!in joke.

maybe the fans will start saying there's no value in the season ticket?

nft.
 
Unread 11-01-2010, 12:14 PM
denis lawless
 
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Quote:
Originally Posted by El Chalten
utd are in the shit.

all this talk of no value in the market is a £#%&!in joke.

maybe the fans will start saying there's no value in the season ticket?

nft.
there isnt....not when you can get sorted outside for under £20
 
Unread 11-01-2010, 12:26 PM
waynes ear's
 
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the glazers are excellent
 
Unread 11-01-2010, 12:30 PM
zzalsar3
 
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Yay! Some good news on the financial front at last.
 
Unread 11-01-2010, 12:32 PM
Mr_Ed
 
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Quote:
Originally Posted by zzalsar3
Yay! Some good news on the financial front at last.
Agreed - if we sell our best players year on year we'll make a profit for a few seasons to come.
 
Unread 11-01-2010, 12:34 PM
waynes ear's
 
Default

Quote:
Originally Posted by Mr_Ed
Agreed - if we sell our best players year on year we'll make a profit for a few seasons to come.
"few seasons" ?

Pushing it a bit aint it?
 
Unread 11-01-2010, 12:43 PM
El Chalten
 
Default

Quote:
Originally Posted by denis lawless
there isnt....not when you can get sorted outside for under £20
was that payment in kind as well?

nft.
 
Unread 11-01-2010, 12:44 PM
denis lawless
 
Default

Quote:
Originally Posted by El Chalten
was that payment in kind as well?

nft.



 
Unread 11-01-2010, 12:47 PM
Sparky***
 
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Michael Owen wears No.7.
 
Unread 11-01-2010, 12:51 PM
waynes ear's
 
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Quote:
Originally Posted by Sparky***
Michael Owen wears No.7.
Is that a new brand of chanel?
 
Unread 11-01-2010, 12:51 PM
Withers
 
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So those figures include the income from winning the Champions league?

How much did we spend on transfers in those 12 months? It's a bit biased just to report who we sold, won't Berbatov be in that financial year?
 
Unread 11-01-2010, 12:54 PM
That Boy Ronaldo!
 
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Quote:
Originally Posted by Withers
So those figures include the income from winning the Champions league?

How much did we spend on transfers in those 12 months? It's a bit biased just to report who we sold, won't Berbatov be in that financial year?
Yeah they will be.

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?
 
Unread 11-01-2010, 01:14 PM
zzalsar3
 
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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.
 
Unread 11-01-2010, 01:16 PM
believe
 
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What I can't work out is why they've actually announced anything??! They have no reason whatsoever to do so. Oh unless they've heard the grumblings among the fans and need to try and make people stop worrying.
 
Unread 11-01-2010, 01:17 PM
Kwik
 
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We should flog Ferie too. Reckon we'd get a world record transfer fee for him.
 
Unread 11-01-2010, 01:20 PM
That Boy Ronaldo!
 
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Quote:
Originally Posted by believe
What I can't work out is why they've actually announced anything??! They have no reason whatsoever to do so. Oh unless they've heard the grumblings among the fans and need to try and make people stop worrying.
Which they aint done really.

Good job we sold Ronaldo otherwise we would of reported over £30mil loss and that's with a succesful season!
 
Unread 11-01-2010, 01:31 PM
El Chalten
 
Default

Quote:
Originally Posted by That Boy Ronaldo!
Which they aint done really.

Good job we sold Ronaldo otherwise we would of reported over £30mil loss and that's with a succesful season!
that really is my point.

utd are going to have to sell at least £30m of players every season to break even.

nft.
 
Unread 11-01-2010, 01:32 PM
hopkins
 
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I await redloner's view on all things financial
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