United advised to maximise overseas results

A leading soccer finance expert has advised Manchester United to go it alone and sell their overseas screening rights individually.

The Old Trafford outfit today announced a 48% rise in operating profits, plus a healthy increase in turnover.

Even their wages-to-turnover ratio, while rising to 48%, is far lower than the majority of their Premiership rivals, confirming that while their dominance on the field may be being tested by Arsenal, there are no realistic challengers to the title of ‘world’s richest club’.

“Like many clubs, United probably feel they could exploit their supporter base more than they currently do,” said Oliver Butler, editor of Soccer Investor.

“However, when you consider they estimate their fan base at 50 million worldwide, there is a lot more potential than exists anywhere else.

“One of the ways of achieving that might be for the club to sell its own rights to television abroad while retaining the collective bargaining agreement domestically with the Premier League.”

With Leeds and Chelsea saddled by huge debt, it would appear United’s only two rivals in the financial stakes are Arsenal and Liverpool, and even then, according to Butler, there are problems ahead.

“The only clubs in England who might be able to get anywhere near them are Arsenal and Liverpool – and that’s only if they keep qualifying for the Champions League.

“And in Arsenal’s case they still have to find substantial sums of money to finance their new stadium, a cost which United have already borne.

“United have recently signed huge sponsorship deals with a number of organisations which will boost their profile worldwide, and the shirt deal with Nike will probably lift their revenue streams even further.

“The only real concern is the rise in wages but that will be halted by the deflationary pressure which is currently being applied to contracts across the board. In any event, spending 48% of your turnover on salaries is a situation most other clubs would die for.”