Man Utd back to profitability
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.
The club boosted so-called commercial revenue 27% to £103.4m as a jersey sponsorship accord with Aon began and sold licensing rights to companies such as Honda Motor Co, which is making United-branded mopeds in Thailand.
Matchday sales rose 8.3% to £108.6m on proceeds from a tour of the US and because United played more home games than the previous campaign by reaching the Champions League final and FA Cup semi-finals. Media revenue rose 13.9% to £119.4m, driven by a bigger share of Champions League television rights income.
After winning its 19th Premier League last season, United strengthened its squad in June by signing goalkeeper David De Gea, defender Phil Jones and winger Ashley Young.
It tops the Premier League after three games of this season with a maximum nine points.
