Date: 1st September 2011 at 12:23pm
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Record profits announced

Manchester United have posted their financial results for the year ending June 2011. These results coincide with the Glazer family planning a floatation on the Singapore Stock Exchange of a minority stake, believed to be in the region of 25-30%, to raise approximately £600 million. The latest set of financial figures would be used to entice potential investors by making assurances about the running of the club and the financial structure upon which it is based. Indeed at a glance the results would make for encouraging when compared to last year’s significant loss, instead finding themselves posting a pre-tax profit of £29.7 million.

Listed below are some of the highlights from the set of results announced on 1st September 2011:

  • Record operating profit of over £110 million
  • Pre-tax profit £29.7 million
  • Gross debt £458.9 million
  • Net debt £308 million
  • Cash £150.6 million
  • Record revenues of £331.4 million (up £45 m)
  • Net assets of £810.6 million
  • Commercial income £103 million
  • Interest payments £51.2 million
Although the financial results look promising, in part helped by strong revenues, on the pitch, sponsorship deals and an expansion of the global brand, the interest payments that have eaten away at profits will undoubtedly be a thorn in the side for many worried about the state of the financial club being employed at the club. It should be noted that this set does not include the recently announced training kit sponsorship with DHL. It remains to be seen what effect the proposed floatation on the stock market will have and to what extent this will go to strengthening the clubs financial position. As well as this the two tier structure that has been proposed, whereby for every voting share there is a non-voting share (a tactic used to maintain overall control in favour of the owner), has come in for criticism as it is not something favoured in Europe. Despite promising results the Glazer family still have a long way to go before fans are reassured about the well-being of their team and the lack of clarity in their US operations certainly do not help this. Regardless, for the time being, observers will be uplifted by this year’s performance and will hope that this continues going in to next year.

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