Paul Marin, Xcuse and Peter R

[Jangle]

Record breaking £110m profits for Manchester United as revenue soars to £330m



By Sportsmail Reporter

Last updated at 11:45 AM on 1st September 2011

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Manchester United today posted record operating profits of £110.9million for the past financial year.

The club have also recorded a record revenue of £334.1m - an increase of £45million from last year and passing £300m for the first time - according to figures for the year ended June 30, 2011.
United, who won the Barclays Premier League title and reached the Champions League final during the period, have also recorded a commercial turnover of £103.4million.

We're in the money! United have posted huge profits

The latest results come as the club consider a plan to raise up to £614million by floating on the Singapore Stock Exchange.
The figures contrast with those of last year when losses hit a record £83.3million, largely due to the costs of a bond issue.

The 15.7 per cent rise in commercial revenues is hugely encouraging for the club and does not include a new £10million-a-year training kit sponsorship deal with DHL.

The money men: The Glazers have seen United's value grow despite fans' unrest






The Singapore flotation is being considered by the Glazer family, the club's owners, as a means of addressing debts.

Net debt is down to £308.3million from £376.9million according to the new figures. It is thought the flotation could be completed by the end of the year.

United, having struggled to sell corporate boxes last year, have also enjoyed an increase in matchday turnover from £100.2million to £108.6million.


Read more: http://www.dailymail.co.uk/sport/foo...#ixzz1Whta9IBL

[Lazie]

Oh ... sorry ..... didn't see that you already p!$$ed off the Looserpool fans. Especially that one that daily predict the demise of the Empire. Mawning PM?

[Peter R]

I'm happy for you guys... I am not surprised, you can't be the winner of three EPL tiles in a row without attracting a hell of a lot of waggonists...

To be honest I'm not up to speed on the financial side of things but it looks like the debt is still sizeable but if you keep raking in the profits should be able to pay it off fast... if the Glazers don't pocket it all as dividends...

[Peter R]

... by Loserpool I assume you mean Liverpool; anyway, how did he pi$$ us off? I don't feel particularly peeved at anything right now.

[Assasin]

Glazer plan to sell off some of the shares to raise the money to pay off the debt. If they do then they will have most of the profit.

[Peter R]

As an investor (not a fan of the club) would the shares be a good investment? just asking...

[Paul Marin]

Oh ... sorry ..... didn't see that you already p!$$ed off the Looserpool fans. Especially that one that daily predict the demise of the Empire. Mawning PM?

Good evelin Mr. Lazie. Gwaan celebrate. Hitler did the same on Sept 1, 1939 when Germany invaded Poland. How fitting that your evil empire celebrates today on the anniversary of that fateful day.

I keep telling you not to get seduced by the nectar that drips from the d-evil's hands, but gwaan...God is a patient God and makes some of us good people (me, X, Peter) suffer for his own reasons. Just ask the man dem from Auschwitz. Save yourself my son.

I all seriousness, Manu** will always be in debt but god help them if their cashflow ever slows down. The idea of floating the club on a stock exchange is a good one as it will raise capital, but that capital will only go into debt service. Once they get the debt down to a reasonable ratio to sustain any slip up in fortunes, they will be fine.

You only have to look at how Wenger panicked after last week's defeat to know how devastating falling from the UCL ranks can be to a debt laden club. Manu** has to start thinking about reducing the debt as a) Slur Fartlick can't live forever and b) the odds of his replacement being as successful is extremely slim. You have 3 to 5 more years of dominance before your team starts to slip; that's when things will become unmanageable if debt is not dealt with now.

You heard it here first.

YNWA.

[Lazie]

Good evelin Mr. Lazie. Gwaan celebrate. Hitler did the same on Sept 1, 1939 when Germany invaded Poland. How fitting that your evil empire celebrates today on the anniversary of that fateful day.

I keep telling you not to get seduced by the nectar that drips from the d-evil's hands, but gwaan...God is a patient God and makes some of us good people (me, X, Peter) suffer for his own reasons. Just ask the man dem from Auschwitz. Save yourself my son.

I all seriousness, Manu** will always be in debt but god help them if their cashflow ever slows down. The idea of floating the club on a stock exchange is a good one as it will raise capital, but that capital will only go into debt service. Once they get the debt down to a reasonable ratio to sustain any slip up in fortunes, they will be fine.

You only have to look at how Wenger panicked after last week's defeat to know how devastating falling from the UCL ranks can be to a debt laden club. Manu** has to start thinking about reducing the debt as a) Slur Fartlick can't live forever and b) the odds of his replacement being as successful is extremely slim. You have 3 to 5 more years of dominance before your team starts to slip; that's when things will become unmanageable if debt is not dealt with now.

You heard it here first.

YNWA.

.. still preaching doom and gloom ...eh?

[Paul Marin]

As an investor (not a fan of the club) would the shares be a good investment? just asking...

Peter, that's the irony. It wouldn't be, not in the long term anyway unless the club figures out a way to operate in a fiscally responsible manner, still win trophies AND grow the topline, all at the same time. Tall order.

The challenge with the business of football is that revenues are very difficult to grow as there are only 3 sources: match day, tv and sponsorships and without topline growth, you don't have much of a future. Manu** has capitalized on their brand recognition increasing sponsorships, but for all their worldwide recognition, realize that they are still less than a $1B in revenue company. Small in the grand scheme of things, especially when you consider how many people watch football.

The one area that remains open to all football clubs that no one has done a good job of turning in their favor is in leveraging the web for other revenue streams.

There are supposedly 75M manure fans world wide (and we wonder why the world is going to hell in a hand basket). If the club could figure out how to leverage the web to make these misguided souls a revenue growth area, the sky's the limit. This is a hugely underutilized revenue source in my mind of where football clubs can go to make more money. If they figure that out, chi-ching...but don't hold your breath.

[Paul Marin]

.. still preaching doom and gloom ...eh?

Save yourself my son...save yourself...it is not too late. As I said - you heard it here first - 3 to 5 years MAX. The Prem will be upended by the new financial rules (which is another reason you all need to pay down debt) which may make life a bit difficult if they are carried through for you all Lehman Brothers wannabees.