Manchester United parent company announced losses

Red Football Joint Venture Ltd, the company which owns English Manchester United, posted an overall debt of GBP 649.4 million for the 2007/08 season (to June 30, 2008), up from GBP 604 million in the previous year.

GBP 518.7 million of the total debt is secured against the club and its assets, and a further GBP 175.5 million with an interest rate set at 14.25 percent, is secured against the Glazer's family equity.

Turnover was reported GBP 256.2 million, up from GBP 210 million, while operating profit was up GBP 5 million to GBP 80.4 million. However the parent company had posted a full-year loss of GBP 43.2 million mainly due to interest payments of GBP 68.8 million during the term.

Television revenues, made from the improved Premier league deal and Champions League final run, saw 50 percent increase to GBP 90.4 million (2007: GBP 61.5m), while sell-out games at the 75,000 capacity at Old Trafford saw the match-day revenues climb from GBP 92.6 million to GBP 101.5 million.

The club signed a number of new commercial partners - including Saudi Telecom, Diageo, and Seoul Metropolitan Government - and renewed deals with Budweiser, Travelcare, and GSK, and together with the AIG sponsorship, which is due to end by June 2010, the club's commercial operations generated GBP 64 million - up 14 percent from last year.

Wage bill was reported GBP 121 million, an increase of GBP 29 million, after improved deals for Wayne Rooney and Cristiano Ronaldo. The club paid GBP 13.3 million in bonuses (2007: GBP 8.6m) with Chief executive David Gill is United’s best-paid non-playing or non-coaching employee on GBP 1.7 million a year.

The club posted a GBP 21.8 million profit on the sale of players, up GBP 11.7 million from the previous year.

The club also increased its stake in its TV station MUTV to 66.7 percent, aiming to have greater influence over the future strategy of the channel.

Red Football Joint Venture was set up when the Glazer family borrowed heavily to buy the club for GBP 790 million in 2005. The Glazers have maintained that the present ownership structure and debt level is sustainable, and the club has consistently outspent its rivals in the transfer market.