Real rule but Glazers vow to return United to top of ‘rich list’

MANCHESTER United’s owners are bullish about their financial future despite the club being toppled from top spot in the world money league by Real Madrid.

The Glazer family, who have a total debt of £540million to service following last year’s takeover, insist new sponsorship deals and the expansion of Old Trafford will stand United in good stead in the future.

Real have soared to the top of the Deloitte ‘rich list’ earning £186.2million in revenue, £20million more than United, in 2004-05, but United are still by far the most profitable club in the world.

A spokesman for the Glazer family said: “Good luck to Real Madrid. Let them enjoy the limelight we have enjoyed for the previous eight years. We are optimistic about our future revenue generating expectations with the stadium expansion and the prospect of more lucrative sponsorship deals.”

The capacity at Old Trafford will rise to 76,000 next season, with an extra 7,500 seats coming from the new quadrants in the stadium. Together with this season’s 10% rise in ticket prices, United should earn an extra £16m in matchday income next year.

Real Madrid have achieved their success by concentrating on their commercial income, from areas such as merchandising, shirt sales and sponsorship.

Whereas United earn 42% from matchday income, 29% from broadcasting and 29% from commercial, the split for Real is 23%/32%/45%.

Richard Hunter of Hargreaves Lansdown Stockbrokers said: “The report shows that Real have overtaken United as the world’s biggest earning football club - that is not necessarily to say they are more profitable, however, since the report makes no allowances for costs or expenditure.”

For example, United have sold their replica shirt rights to Nike, and earn around £20million annually from the deal without any manufacturing or distribution costs. Real’s income from replica shirts is around twice as much but they also have to cover the costs.

Real have also taken a leaf out of United’s book in terms of international marketing. Five years ago, 80-90% of their merchandising income came from Spain, and that figure is now 40% with the rest coming from international sales.

The pre-season tour to the Far East is hugely important to Real, especially since David Beckham joined, but the club are now concerned the Asian market is becoming saturated.

United have been trying to crack the north American market and Real may try to muscle in there as well.