Join Now | 
HomeAboutContact UsPrivacy & SecurityAdvertise
Soccer America DailySpecial EditionAround The NetSoccer Business InsiderCollege Soccer ReporterYouth Soccer ReporterSoccer on TVSoccer America Classifieds
Paul Gardner: SoccerTalkSoccer America ConfidentialYouth Soccer InsiderWorld Cup Watch
RSS FeedsArchivesManage SubscriptionsSubscribe
Order Current IssueSubscribeManage My SubscriptionRenew My SubscriptionGift Subscription
My AccountJoin Now
Tournament CalendarCamps & AcademiesSoccer GlossaryClassifieds
Manchester United's ticking time bomb
by Paul Kennedy, April 10th, 2009 7AM

MOST READ

MOST COMMENTED

Despite record revenues of $371 million, Manchester United's parent company, Red Football Joint Venture, suffered pre-tax losses of $65.6 million in 2007-08 in part because of interest payments on loans its owners are unable to restructure in the current economic environment.

The 2007-08 season saw United win the English Premier League and UEFA Champions League.

With 63,000 season-ticket holders, its own TV network and a lucrative shirt deal, as well as TV revenues from the lucrative EPL deal, United enjoyed an operating profit of $118.3 million.

"The turnover is spectacular, which is what you would expect from a season when they won the Premier League and Champions League," Harry Philp, financial analyst at Hermes Sports Partners, told BBC News.

The losses were the result of payments on moneys the Glazer family borrowed when they took United private. Their debt is now more than $950 million.

The loans included money owed to hedge funds that lent money at 14.25 percent interest rate.

"That debt is a ticking time bomb that they have to pay off," added Philp.



No comments yet.

Sign in to leave a comment. Don't have an account? Join Now




AUTHORS

ARCHIVES
FOLLOW SOCCERAMERICA

Recent Soccer America Daily
The Good, The Bad and -- the Beyonce    
[UEFA CHAMPIONS LEAGUE] Fans and celebrities alike were treated to a fantastic UEFA Champions league game ...
What They're Saying: Bruce Arena    
"First of all, we haven't won anything, so right now we don't stack up with anybody. ...
Report: Ownership group primed to buy LA team    
[MLS SPOTLIGHT] The ownership group that's almost certain to acquire Chivas USA from MLS and move ...
'Clinical' PSG punishes Barca weaknesses    
[UEFA CHAMPIONS LEAGUE: Tuesday] No Zlatan Ibrahimovic? No Thiago Silva? No problem for Paris St. Germain ...
USL PRO final outdraws college football in Sacramento    
[SOCCER ON THE AIR] Saturday's USL PRO final won by Sacramento Republic FC averaged a 1.6 ...
Klinsmann has lots of choices for October friendlies    
[USA MEN] The pair of international friendlies against Ecuador Oct. 10 and Honduras Oct. 14 should ...
Where to Watch European Soccer    
Here are 329 places Soccer America readers recommend where you should go to watch soccer for ...
Soccer America Men's Top 25    
[COLLEGE RANKINGS] Defending champion Notre Dame is back on top in the Soccer America Men's Top ...
Soccer America Women's Top 25    
[COLLEGE RANKINGS] Despite its 1-1 tie at Arizona State, defending champion UCLA held on to the ...
Mario Goetze's beautiful backward nutmeg on Brecko    
[VIDEO PICK: Skills] Mario Goetze, Germany's World Cup final hero, not only has a nose for ...
>> Soccer America Daily Archives