Manchester United on Friday reported huge losses despite an operating profit, due to the hefty interest payments on the club's loans which did not stop their debt pile increasing. The English Premier League giants reported an overall loss of 83.64 million pounds (132.7 million dollars, 95.6 million euros) for the financial year to June 2010.
The end-of-year numbers showed the Red Devils became the first English club to break the 100-million-pound operating profit barrier. They posted figures up 9.4 percent to 100.8 million pounds (160 million dollars, 115 million euros), largely due to increased commercial and broadcasting income.
However, this does not include the cost of servicing the club's debts, with United paying 40 million pounds in interest payments. While the club's turnover rose to a record 286.4 million pounds, holding company Red Football Ltd's gross debt swelled to 521.7 million pounds. US sports entrepreneur Malcolm Glazer and his family bought Manchester United in 2005 in a heavily-leveraged 790-million-pound take-over.
Other figures showed their matchday turnover decreased 7.9 percent to 100.2 million pounds, which they put down to fewer games. Meanwhile their media turnover rose 5.1 percent to 104.8 million pounds and their commercial revenues increased by 16.5 percent to 81.4 million pounds. Wages rose by seven percent to 131.7 million pounds. United's overall turnover of 286.4 million pounds contrasts sharply with that of rivals Manchester City, who last week celebrated hitting a turnover figure of 125 million pounds.
Comments
Comments are closed.