Join Now  | 
Home About Contact Us Privacy & Security Advertise
Soccer America Daily Soccer World Daily Special Edition Around The Net Soccer Business Insider College Soccer Reporter Youth Soccer Reporter Soccer on TV Soccer America Classifieds Game Report
Paul Gardner: SoccerTalk Soccer America Confidential Youth Soccer Insider World Cup Watch
RSS Feeds Archives Manage Subscriptions Subscribe
Order Current Issue Subscribe Manage My Subscription Renew My Subscription Gift Subscription
My Account Join Now
Tournament Calendar Camps & Academies Soccer Glossary Classifieds
Manchester United's ticking time bomb
by Paul Kennedy, April 10th, 2009 7AM
Subscribe to Soccer America Daily

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
What They're Saying: Leonardo Santiago    
"We have the MLS rights throughout central and north Florida, so any discussion of another franchise ...
MLS Cup Countdown: 'Amazing night' expected    
Saturday's MLS Cup shapes up as one of the best in league history with arguably the ...
Coaching: New NSCAA course on LGBT Inclusion     
The National Soccer Coaches Association of America (NSCAA) has launched a free online course to help ...
What They're Saying: Don Garber    
"If you could wave a magic wand and not have to address things like: What do ...
MLS Moves: 'Caps re-sign Hurtado, renew 11 options     
A day after announcing it had declined the option on midfielder Pedro Morales, Vancouver finalized its ...
TV: Fox Sports will air MLS Cup in VR    
For the first time since its launch in 1996, MLS will not air its final on ...
Video Pick: Bundesliga goalkeeper bloopers    
As part of its annual advent calendar series, Bundesliga YouTube presents the Top 10 most "catastrophic" ...
U.S. Abroad: Bob Bradley to critics: 'Hit the road'    
With just one win and five points in seven games as Swansea City's manager, Bob Bradley ...
Soccer in December in Toronto -- who'd have thought?    
It may surprise a lot of people to realize that Seattle is farther north than Toronto. ...
Tab Ramos names U-20 roster for Costa Rica friendlies     
Coach Tab Ramos' 20-player U.S. U-20 national team roster for friendlies at Costa Rica Dec. 17 ...
>> Soccer America Daily Archives