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Profit for Manchester United
England - 29 January, 2007
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(correction 1.05pm) The Glazer's first season as owners of English Manchester United showed profits had risen by GBP 20 million from last year's GBP 10.8 million to GBP 30.8 million.
Manchester was eliminated from the Champions League at the first stage and this cost the club GBP 2.8 million in income but CEO David Gill said the club was now poised for "dramatic revenue growth".
Malcolm Glazer, a US tycoon, bought Manchester for GBP 790 million in 2005 in a deal that was heavily financed through debt, much of it transferred onto the club.
Since June 2006, the club has been making money from its four-year GBP 56.5 million AIG shirt sponsorship deal. Match day earnings increased along with an increase in Old Trafford's stadium capacity, from 68,000 to 76,000.
Domestic TV football rights, which were signed last summer, generated GBP 1.7 billion total for Premier League clubs. The new Premier League TV deal for 2007-10 could see a 65 percent increase in Premier League TV money for every top-flight club, according to Barclays Capital.
"With sell-out crowds at the extended Old Trafford and record sponsorship deals like AIG, Manchester United can look forward to a future marked by dramatic revenue growth," said Gill.
Profit before tax was GBP 30.8 million, up from GBP 10.8 million, with GBP 12 million of that secured from the sale of Nigerian Jon Obi Mikel to English Chelsea.
Turnover at Manchester was GBP 165.4 million, against GBP157.2 million in the period before.
United said that during the 2005-06 period it paid GBP1.8 million in fees to agents, compared to GBP 2.6 million in the previous 11 month period.
The club also said it had 64,000 season-ticket holders and a waiting list of 10,000 more.
In a refinancing deal last July, there was a decrease from GBP 90 million a year to GBP 62 million from loan fees that were charged on the capital that the Glazers borrowed to buy the club.
As part of the restructuring plan, overall borrowings went up from GBP 580 million to GBP 660 million, but the club told fans that were concerned about the amount of debt that the move was "good housekeeping".
Manchester was eliminated from the Champions League at the first stage and this cost the club GBP 2.8 million in income but CEO David Gill said the club was now poised for "dramatic revenue growth".
Malcolm Glazer, a US tycoon, bought Manchester for GBP 790 million in 2005 in a deal that was heavily financed through debt, much of it transferred onto the club.
Since June 2006, the club has been making money from its four-year GBP 56.5 million AIG shirt sponsorship deal. Match day earnings increased along with an increase in Old Trafford's stadium capacity, from 68,000 to 76,000.
Domestic TV football rights, which were signed last summer, generated GBP 1.7 billion total for Premier League clubs. The new Premier League TV deal for 2007-10 could see a 65 percent increase in Premier League TV money for every top-flight club, according to Barclays Capital.
"With sell-out crowds at the extended Old Trafford and record sponsorship deals like AIG, Manchester United can look forward to a future marked by dramatic revenue growth," said Gill.
Profit before tax was GBP 30.8 million, up from GBP 10.8 million, with GBP 12 million of that secured from the sale of Nigerian Jon Obi Mikel to English Chelsea.
Turnover at Manchester was GBP 165.4 million, against GBP157.2 million in the period before.
United said that during the 2005-06 period it paid GBP1.8 million in fees to agents, compared to GBP 2.6 million in the previous 11 month period.
The club also said it had 64,000 season-ticket holders and a waiting list of 10,000 more.
In a refinancing deal last July, there was a decrease from GBP 90 million a year to GBP 62 million from loan fees that were charged on the capital that the Glazers borrowed to buy the club.
As part of the restructuring plan, overall borrowings went up from GBP 580 million to GBP 660 million, but the club told fans that were concerned about the amount of debt that the move was "good housekeeping".
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