United Reveal Record Turnover Figures

Manchester United has revealed record turnover figures for 2006/07 of £245m, a 27% year-on-year rise ensuring the Premiership champions remain the UK’s richest club.

The figure puts them ahead of the £200.8m reported by Arsenal for last season, but behind Real Madrid of Spain, whose turnover was £263m for the same period.

Pre-tax profits rose 93% to £59.6m, helped by United winning the Premier League and reaching the FA Cup final and the Champions League semi-finals.

The results, which reflect the second year of the club being owned by the US Glazer family, also saw a boost in media revenues by 35% to £61.5m.

An update on the club’s debt and interest repayments – the Glazer family borrowed heavily to buy the club for £790m in 2005 – will be made in the spring when the Glazer company accounts for Red Football are lodged.

Last May the annual interest payment was £62m, and in the autumn a club spokesman said debts continued ‘to be comfortably serviced by the business’.

Chief executive David Gill commented: ‘I am confident that the uplift in the Premier League television deal, together with our new sponsorship sales structure will enable the club to continue to increase its revenues and profitability to provide support to the team’s quest for further on-field success.’

Details of the new sponsorship structure, driven by the recently appointed commercial director Richard Arnold, have not yet been revealed.

Manchester United once again disclosed the total payments made in the year to players’ agents – £2.1m in 2006/07 as against £1.8m the previous season.

Matchday revenues were up 30% to £92.6m, reflecting the expansion of Old Trafford to a larger capacity of more than 76,000.
The £245m turnover figure is for its overall business, but Manchester United points out that more than £200m of that figure was for its core football activities.

The club said it had reduced its wages-to-turnover ratio to 43.6%, well within the 50% set by the Glazer family as a long-term aim.