Breaking News: United’s debt costs overshadow earnings growth

MANCHESTER United saw earnings grow 9% last year but it was left with an £83.6m loss after shouldering finance charges and exceptional costs.

In the year to June 30 the club recorded sales of £286.4m, up 3%, and a pre-tax profit of £27.3m, down 70% on the previous year when the figures benefited from the record £80m transfer of Christiano Ronaldo.

The club was keen to draw attention to its 9% growth in earnings before interest, tax, depreciation and amortisation (EBITDA) to £100.8m.

But finance charges of £42.2m and exceptional costs of £64.6m associated with the club’s £502m bond issue earlier this year pushed it to a £83.6m annual loss, down on last year’s £25.5m profit.

The Glazer family controversially tied around £716m of debt to Manchester United when they bought it five years ago, with a large portion of this refinanced in the bond issue.

The club’s total debt stands at £521.7m according to the figures. The Glazers also owe a further £225m in high interest PIK loans, which are secured against their shareholding in United.

United said match day revenues fell 7.9% due to fewer games. Media revenue increased 5.1% to £104.8m and commercial revenues were up 16.5% to £81.4m.