Man United profits fall 54%

MANCHESTER UNITED counted the cost of a slide in media income yesterday after profits for the first half of its financial year more than halved.

The figure of £12.4 million (€17.8m) for the six months to January 31 was down on the £26.8m (€38.5m) of a year earlier, a drop of 54%, reflecting a new television deal and the impact of the club's third place Premiership finish on earnings from the Champions League.

The club described the period as "challenging" and said it had been made "even more difficult" by speculation surrounding takeover proposals from Malcolm Glazer, the owner of the Tampa Bay Buccaneers, who holds 28.1% of the club but has seen his bid interest draw protests from supporters.

Despite the drop in media income, United said it enjoyed strong matchday and commercial revenues during the first half of the financial year. Total turnover was down slightly on a year earlier at £91.6m (€131.7m).

There was also a rise in staff costs, up to £42.7m (€61.4m) from £37.7m (€54.2m) and representing 46.6% of turnover compared with 40.8% last year.

Last summer's signing of striker Wayne Rooney was among factors for the rise, while the player had an impact on United's bottom-line showing as the transfer required a one-off charge of £1.8m (€2.6m).

United's operating profits were £28.4m (€40.8m), against £39.7m (€57.1m) a year earlier.

United warned in September it faced a short-term hit to profitability because of a sharp drop in annual media revenues, including £8m (€11.5m) from the latest Premier League television deal. The third place finish would also have a £6m (€8.6m) knock-on effect on media revenues from the Champions League.

The club said it would continue to strive to keep staff costs at a level no higher than 50% of turnover.

However, chairman Roy Gardner added: "Player wage control remains difficult, particularly with the strong competitive pressures from a small number of rival clubs across Europe."

The club incurred £500,000 of professional fees in dealing with the takeover speculation and said the figure would "increase significantly' if Mr Glazer's interest turned into a full takeover proposal.

Analysts said the figures lifted Mr Glazer's takeover hopes as it made the tycoon's £800m (€1.15 billion) offer appear better value.