Manchester United post increased revenues for second half of last year
Tue 21st Feb 2012 | Money & Finance
Manchester United's revenue increased to £175 million in the last six months of 2011, the Premier League club announced today.
United, who are second in the table behind neighbours and bitter rivals Manchester City, released their financial report for the fourth quarter of 2011 today.
The figures showed that the club's total revenue at the end of 2011 stood at £175m, an increase of £18.5m on the figure of £156.5m, which United declared at the end of 2010.
The club have experienced increases in match day revenue – up from £52.4m to £54.5 million, media revenue – up from £53.7m to £60.9m, and commercial revenue, which has risen to £58.6m from £50.4m.
The club, who are taken over by the Glazer family in 2005, have a debt of £439m as of the end of last year, down from £508m the previous year.
The reason behind the decrease in the club's debt is because United have bought back some of the bonds that were sold as part of a £500m refinancing exercise at the start of 2010.
United also reported today that total operating costs rose sharply from £96.9m to £110.8m.
Net player capital expenditure jumped from £11.7m to £47.9m due to the summer signings of David de Gea, Ashley Young and Phil Jones and general capital expenditure rose by £10.4m, thanks partly due to the cost of refurbishment of the club's hospitality boxes at Old Trafford.
The figures show United currently have a bank balance of £50.9m.
The club are expected to experience a decline in income over the next six months after dropping down to the Europa League from the Champions League.
In response a Manchester United Supporters' Trust (MUST) spokesperson said:
"Manchester United revenues continue to grow strongly although costs are increasing just as quickly so pretty much negating that growth. However the key figures of interest to supporters show the Glazers have now spent every penny of the money received from the sale of Ronaldo, and more. That's now £92.8m spent on buying back their own bond debt that they loaded onto our club. So statements at the time that all of the Ronaldo money would be made available for reinvestment were clearly just spin."
"Since the sale of Ronaldo (30th June 2009) net transfers (not includingRonaldo) have totalled just £90m while they have taken out of the club £225m to cover their debt payments and interest. What could the club have done with that extra £225m? Cheaper tickets for loyal fans, investing massively in the squad and stadium, developing and retaining the best youth players, competing on an equal basis with the very best teams in Europe. This is the true cost to Manchester United of the Glazers ownership."
Results available here: http://mufplc.com/
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