Manchester United Post 80 Million Pound Loss Despite Increased Operating Profits

Club president David Gill immediately staved-off speculation that club finances would force a sale of players, saying the club had “zero pressure” do to “money in the bank.”

Gill described the status of Manchester United’s accounts as “very good,” partly evidenced by United’s turnover increasing to £286.4 million. Though match-day revenues went down because of United’s early elimination from UEFA Champions League, new sponsorship revenues eventually led to a £100.8 million operating profit.

The large operating loss was due to what the BBC labeled as “one-time” costs; specifically,the finance costs associated with a January bond that allowed United to pay-off most of its debts to banks, leaving the club with fewer financial restrictions than would have been in place had the obligations remained with the banks.

The total interest payments servicing those bonds remain roughly the same, however. Those interest payments combined with the bonds’ finance costs led to the large loss.

With Liverpool’s ownership dominating this week’s news ahead of a sale influenced by club obligations to the Royal Bank of Scotland, today’s news is bound to yield comparisons to Manchester United’s Premier League rivals. Gill was proactive in addressing those comparisons:

“I can’t speak for any other club but the United fans should not be concerned,” said Mr Gill.“We have a long-term financing structure in place, excellent revenues that are growing, we are controlling our costs - total wages are 46% of turnover - and we can afford the interest on our long-term finance.”