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
MLS Moves: Ian Harkes doesn't stray from D.C. backyard    
Missing out on a MAC Hermann Award winner who just happens to be the son of ...
MLS Expansion: San Diego stadium part of $1B project    
Timing is everything, and Sunday's USA-Serbia friendly at Qualcomm Stadium will give proponents of an MLS ...
MLS Camp Chatter: Diskerud not in NYCFC mix    
U.S. international Mix Diskerud, who did not play for New York City FC after June 2 ...
USMNT: Three players depart January camp    
FC Dallas midfielder Kellyn Acosta and defender Matt Hedges both left the U.S. men's national team ...
What They're Saying: CAF spokesperson Junior Binyam    
"CAF has taken action but we can't certify 100 percent it will not happen again. Even ...
Video Pick: Goals Galore by Wayne Rooney    
Sky Sports put together a compilation of Wayne Rooney's best goals for Everton, Manchester United and ...
Roster: Namazi calls in 28 for U.S. U-18 boys camp    
Coach Omid Namazi has named a 28-player roster for the first U.S. U-18 boys national team ...
Christian Pulisic extends his Borussia Dortmund contract    
Christian Pulisic, whose original contract with Borussia Dortmund ran through the 2018-19 season, has signed a ...
What They're Saying: Adam Straith    
"I had never even worn keeper gloves. That was the first time. I think you could ...
MLS players get all four goals for Canada in 4-2 win    
The Toronto FC trio of Jay Chapman, Jonathan Osorio and Tosaint Ricketts and the Montreal Impact's ...
>> Soccer America Daily Archives