SMOKE AND MIRRORS AS UNITED ANNOUNCE PROFITS

Last updated : 26 January 2007 By Editor

The Glazers' lapdog claims that United are on a sound financial basis, but with operating profit only increasing from £46.1m to £49.7m (over a 12-month period instead of 11 last term), and profit before tax £30.8m, up from £10.8m (£12m of that secured from the sale of Jon Obi Mikel) things are nowhere near as rosy as Gill and a gullible football press report would have us believe.

As announced by the club last summer, the latest annual interest payment required for the honour of having the Glazers buy the club was £62m.

From the Guardian:

Manchester United are predicting "dramatic growth" in their income over the next two years after seeing their profits rise by £20m to nearly £31m last year.

The club's annual report reveals that turnover was up just over £8m to £165.4m in the year ended June 30 2006 and operating profits were up from £10.8m to £30.8m. The figures were achieved despite United failing to qualify for the group stage of the Champions League for the first time in a decade.

United's chief executive, David Gill, said the new £50m Premier League TV rights deal, the record £18m shirt-sponsorship agreement with the insurance firm AIG and the increase in capacity to 76,000 would result in a major cash injection. United earn more than £2m in ticket sales every home game.
He also insisted United would not fleece fans despite the demand for season tickets.

“The club remain committed to making top-class football affordable and structures its prices accordingly.”

The report reveals United paid £1.8m to agents compared with £2.6m the previous year. They are not compelled to reveal such payments but Gill added:

“The club remains committed to disclosure of the amount it spends on agents' fees and has adopted the Football League's guidelines on this issue.”

Meanwhile, in a stunning bit of spin United claim to have a “waiting list” of 10,000 for season tickets whilst also claiming unsuccessful ticket applications amount to only 6,000 per match. Mathematics obviously isn't the Glazers' strong point.