Manchester United profit doubles
Thursday, January 10, 2008
Manchester United Plc said its annual pre-tax profit doubled on increased sponsorship and after it expanded its stadium and won the League title.
Pre-tax profit in the 12 months to June 30 rose to 59.6 million pounds from 30.8 million pounds in the year-earlier period, the club said on Friday.
The 2006-2007 Premiership winning club, owned by U.S. billionaire Malcolm Glazer, said annual revenue surged 27 percent to 210 million pounds from 165 million pounds.
Interest in the world's richest soccer League and new sponsorship will keep pushing income higher, Chief Executive David Gill said.
"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," Gill said in a statement.
Britain's Barclays Premier League is followed in more than 200 countries as fans in Africa or Asia want to see stars such as Wayne Rooney or Christiano Ronaldo, both at United.
More seats at Manchester United's Old Trafford stadium helped the club lift its match day revenue by 30 percent to 92.6 million pounds, the club said.
Reaching the semi-finals of the lucrative UEFA Champions League competition and the final of the domestic FA Cup helped the Reds increase their media revenues by more than a third to 61.5 million pounds, the club said.
Replica shirts, shirt sponsorship by American International Group and other commercial revenues rose 15 percent to 56 million pounds. The club said it has about 333 million followers around the world.
At a time of soaring players' salaries, the club managed to cut its wages-to-turnover ratio to 43.6 percent from 51.6 percent.
By contrast, players' agents were paid more: 2.1 million pounds last season from 1.8 million pounds during the previous one, Manchester United said.
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