United’s profits set to surge
MANCHESTER United’s twin Premiership and European Cup success will lead to a record profit haul later this month.
The Reds earned prize money of nearly £50m for winning the Premier League last season and netted a further £38m for its European campaign, which culminated in the dramatic penalty shoot-out victory in Moscow over Chelsea in the Champions League final in May.
This success, plus record TV income, is expected to push profits from £59.6m last year to more than £75m.
Financial figures for the year to June 30 2008 will be revealed by the privately-owned group in the next two weeks.
Corporate revenues are expected to have remained strong – with 95% capacity last season for the 9,000 corporate seats available, while the first tranche of the most recent Sky/Sentanta TV deal will boost revenues further.
Turnover in the period is set to rise from £210m to £240m.
Owned by publicity-shy American tycoon Malcolm Glazer, United have to pay around £40m in interest charges to service debts of £550m. The debt was refinanced in 2007 – before the implosion of the banking system – and payments will not have changed materially in the last 12 months, United sources said.
While the club’s financial position is secure, the credit crunch has had an impact, with club sponsor, troubled US insurer AIG saying last month it would not renew its £14m a-year deal beyond 2010.
