Manchester United have reported pre-tax profits of
£48.2million for the year to June 30, with turnover also up from
£80.4m in 2008 to
£91.3m.
The figure includes the world record £80m fee collected from
Real Madrid for the sale of Cristiano Ronaldo and also £41.9m paid
out in interest on a mammoth loan of £509.5m.
The figures were released on a morning when United officially
confirmed their intention to raise £500million through bonds in
order to refinance their debts.
While United are at least in profit once more, the figures
merely emphasise what a drain on resources their debt position
is.
Without the sale of Ronaldo, the Red Devils would have been
reporting a loss of £31.8million, a situation that clearly is
unsustainable over the long term, hence the Glazers' refinancing
plans.
"Manchester United today announced that it will be seeking to
raise approximately £500million aggregate principal amount from an
offering of senior secured notes due 2017," said a United
statement.
"The notes, whose proceeds will be used to refinance existing
debt secured against the club, will be issued by MU Finance
plc."
Because the "senior secured notes" will be used to pay off the
club debt, they will not touch the controversial £175million worth
of payment-in-kind notes that are currently attracting 14.25%
interest.
They are the Glazers' personal debt, so another avenue will
presumably be pursued to try and reduce that interest, which is
rolling up annually at a staggering rate.
In stark contrast to the days when United were a successful PLC
and offered plenty of financial information on a six-monthly basis,
including being a forerunner in stating what agents' fees they had
paid out, now there is no financial requirement to do so, it is
kept to a minimum.
Clearly though, there are areas of improvement, including
confirmation that American finance giant Aon will be new shirt
sponsors next season, while more sponsorship deals have been
announced, underlining the massive attraction United remain across
the globe.
Yet many supporters remain concerned about the financial
structures underpinning the club, even if as recently as Friday,
Sir Alex Ferguson tried to quell any fears, insisting the decision
not to spend three-quarters of the cash received for Ronaldo was
his alone.
"I don't have any concerns about the financial situation," he
said.
"There is absolutely no issue at all. I am really confident
about that.
"Concerns of the supporters are down to the fact that I haven't
moved in the transfer market. But that is nothing to do with the
Glazers or with David Gill.
"It is simply because I am not going to pay £50million for a
striker who is not worth it."