Finally... Some GOOD Financial News.

[billyireland]

Jan. 11 (Bloomberg) -- Manchester United almost doubled profit as it regained its Premier League soccer title last year. Revenue surged 21 percent for the club to lag behind only Real Madrid in team sales.

Net income rose to 42.3 million pounds ($83 million) in the year ended June 30 from 21.6 million the previous year, the club said in a statement. Sales rose to a record 245 million pounds from 202 million, boosted by matchday receipts and media revenue.

"This is a remarkable record set of results," Chief Executive Officer David Gill said in the statement, adding that they position the club "as a true leader in world sports."

Also, when you weight the strength of the £ sterling against the Euro on a month-by-month basis, we apparently topped the rich list, beating out Real Madrid by a staggering - wait for it - €12.00. :cool:

:p

[Numquam Moribimur]

congrats to all who got shit from the megawhore ..... :D:D




PS
LUHG

[israbeckham]

From my 2 whole class periods of college lever accounting, I can conclude that we is a profitable investment.

[Holy__Joe]

And this after Arsenal had be boasting of them being the most well off club and all that crap.....

[Radbennie]

From my 2 whole class periods of college lever accounting, I can conclude that we is a profitable investment.

I love your English Isra! Its gold :D

Well done to a great Financial year and I can predict that this time next year we will see a greater increase in profit.

[Harry Boulton]

The Glazers are handling the club very well since they took over, it has to said. I've no doubt that the title win last year has helped to put us back on the map again.

The club is run so well at the moment. Imagine if the Glazers hadn't taken over and we weren't servicing debts of £60m a year. We'd be head and shoulders above everyone....

[Rewinder]

Glazer family loans soak up record profits at Old Trafford

http://football.guardian.co.uk/News_Story/0,,2239094,00.html

Manchester United have regained their position as Britain's richest football club, posting record figures for turnover and profit for the last financial year. Thanks to the club's ownership structure, however, almost all of the profit will be required to meet interest payments on loans incurred by the Glazer family.

Digging further into the article we discover...

After tax, the club's profits were £42,289,000, just exceeding the £42m required to service annual interest payments of 8% on a £525m loan secured against the club's assets by the Glazer-owned holding company, Red Football. The family is also liable for interest of almost £20m annually on a further £135m in borrowing.

The 20m is rolled into the PIK - so in fact Utd just about stayed above the waves, and debt went up 20m


Not trying to troll or anything, just wanted to know what is your opinion on this article Jitty posted on our forums.


That amount of interest is just brutal, really makes a lot of us gunners think about when we were tossing around the idea of being bought out last summer.

[johan neeskens]

I think that for a more balanced perspective, it might be a good idea to read the Guardian article about how exactly the Glazers are financing the club.

[Republic of Mancunia]

Not trying to troll or anything, just wanted to know what is your opinion on this article Jitty posted on our forums.

I think the spin doctors were hoping nobody would notice that.

[Harry Boulton]

It's saddening but what other club could service those debts and still stay above water? No one that's who.

But we're managing it and I have faith that these debts will be dealt with in due time.....

[Rewinder]

It's good to see that your club is self sustaining, and can handle the level of debt placed on it without getting government assistance cough*Real*cough.

[Harry Boulton]

HA HA HA!!!

Good point. Remember when they got their government to buy their training groud £150m, conveniently the amount they owed to creditors. Then the government "gave" it back to them as a present.

[sdotsom]

It's scary that winning the Premiership has kept us barely above the water in terms of the debt service.

[Achtung]

It's scary that winning the Premiership has kept us barely above the water in terms of the debt service.

Indeed, and this part of the article makes me more than a little suspicious about some of these numbers:

After tax, the club's profits were £42,289,000, just exceeding the £42m required to service annual interest payments of 8% on a £525m loan secured against the club's assets by the Glazer-owned holding company, Red Football.
......

"The amount of debt repayment we are responsible for [£42m] is comfortably serviced by the business and that will remain the case," Gill said.

[Motterman]

"The amount of debt repayment we are responsible for [£42m] is comfortably serviced by the business and that will remain the case," Gill said.

What about reducing the overall debt from over the head of the club?

Treading water is fine - while you are not tired.

How about when we have to actually start paying out on our "purchases"? Nani, Anderson, Tevez, etc.

[sdotsom]

I was just about to ask - we are barely breaking the bank on the interest payments - when are we going to actually service the debt itself?

I'd love to see how these loans are structured, but that's obviously never going to come out of OT.

[Vermont Red]

Woo-hoo! The debt only went up by 20 million!

[GriffinGunner]

Good grief those numbers are scary. Surely there's more to this behind the scenes, but I find it hard to grasp this as a successful business model if the Glazers needed the club to become the wealthiest in the world... just to make the interest payments!!!!! This is why the longtime fans I know were so upset, as this level of debt was not needed in order to keep the club a perennial power. Now, sadly, begins the uber-pimping of the ManU brand. For the true fans I'm sorry about that.

[MtP07]

So the Glazers still don't have a way to pay down the debt...great news!

*awaits that one crazy "ManU" fan, who only posts in this forum when someone bashes Glazer*

[israbeckham]

I think interest payments are ridiculously high and its just money that goes to waste. Both in our lone, and personally more of home loans (my situation.) You need to service the debt as soon as possible, or else you will be paying about %100 percent more then what you are suppose to at the end.