Leaders
Dallmeier

Business Directory

Browse the Directory

Sign Up to the Directory

FC Business Twitter
FC business Linked in
FC Business facebook
FC Business Youtube

Man Utd's accounts show losses of £106m

Tue 22nd Mar 2011 | Money & Finance

Manchester United's parent company Red Football Joint Venture, have announced losses of £108.9million last year in their latest accounts.

The company owned by the Glazer family includes one-off costs from setting up the £526million bond scheme last year to replace their bank loans, according to accounts filed at Companies House.

The loss is and increase of approximately £20 million on the accounts released in October 2010 with the club’s total debt now standing at £590.4m, up from the 2009 figure of £566.1m.

The accounts cited the repayment of a bank loan totalling £526m giving "rise to an exceptional loss on interest rate swaps of £40.7m" and an unrealised currency exchange loss of £19.3m as the main factors for the loss.

It’s understood that the lack of income from selling players also contributed to the loss for the year ending June 30, 2010 - the previous year the company had recorded £21million profit thanks largely to the £80million sale of Cristiano Ronaldo.

Last year's losses included £30.2million interest on their £220million payment in kind (PIK) loans which have since been paid off.

United's club accounts were published in October and revealed losses of £83.6million - the PIK interest payment is not included in the club accounts - but club chief executive David Gill said then there was £165million in the club's bank account and that they were in a healthy position.

Gill said in October: "We have money in the bank so there is zero pressure on that, no pressure at all to sell any star player.

"The philosophy is to retain and attract the best players. We have £165million in the bank but in some ways we would prefer to have £80million in the bank and Ronaldo on the pitch."

 --------------------------------------------------------------------------------------------------- 

Advertisement - KABA Turnstiles


RETURN TO LATEST NEWS SECTION

 

SUBSCRIBE TO THE F.C. BUSINESS RSS FEED

 

If you have any football business related news stories you’d like to share then please contact us – agourley@fcbusiness.co.uk or ryan@fcbusiness.co.uk

Add to: Google Google | Yahoo Yahoo | Live Live | del.icio.us del.icio | Digg Digg |

Related Articles

West Ham Champions Of Season Ticket Affordability

Wed 19th Jul 2017 | Money & Finance

With the new Premier League season approaching it promises to be another exhilarating season, full of twists as well as surprises for fans. Chelsea convincingly captured their fifth Premier League...

Everton Sign Landmark Stadium Financing Partnership

Thu 6th Jul 2017 | Money & Finance

Everton Football Club has signed an agreement with ICBC (London) plc and Industrial and Commercial Bank of China Limited, which will provide the Premier League club with a £60m 3-year credit...

How Football Clubs Source Their Revenue

Thu 22nd Jun 2017 | Money & Finance

It will come as a surprise to no one that football is big business these days. Although players’ wages – especially at the top teams – have increased remarkably, the clubs can pay...

“Why Does Your Club Offer Discounts?” 5 Responses

Tue 6th Jun 2017 | Money & Finance

Following my article last week on the 3 observations about discounts offered on football clubs’ merchandise stores ; I wanted to share some more insight in to the merchandise space. I’ve...