Man Utd back to profitability

MANCHESTER United’s parent company posted a record full-year operating profit of £110.9 million (€126m) as the English soccer champions plan a $1 billion (€700m) initial public offering in Singapore.

Red Football Ltd’s profit before depreciation, amortisation of players’ registrations and exceptional items rose 9.6% for the year to June 30, the club said in a statement. Revenue climbed 16% to £331.4m on ticket sales, broadcast revenue and sponsorship deals with companies including Aon Corp. The net debt of the Glazer family’s team was reduced from £376.9m to £308.3m. Its pretax profit was £29.7m, compared with a loss of £15m last year. It’s the second time in six years the club has been profitable.

“This can only help make the IPO in Singapore a success,” Chris Searle, a partner at BDO LLP accounting firm in London, said. The Glazers plan to raise $1bn by selling as much as 30% of the club to reduce its debt burden and finance player purchases. The family, which also owns the Tampa Bay Buccaneers, bought the team in 2005 for £790m. United spends about £45m a year to service a £500m bond, which matures in 2017.