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Revenues down, net income up for Manchester United

  • ESPN.com, Tuesday, September 18, 2012 8:24 PM

Elimination from the group phase of the Champions League and failure to retain its Premier League title cost Manchester United a hefty share of revenue in the last quarter of the 2011-12 fiscal year, but a public offering and other income sources resulted in a net income rise.

United said in a financial statement it lost 14.9 million pounds ($24.2 million) last quarter. That's compared to a loss of 351,000 pounds ($570,000) in the year-ago period of the final fiscal quarter. Total revenue for that three-month period declined 25 percent. For the year, the company said net income rose by 79 percent in part because of tax credits. It also raised $110 million from its public offering despite a rather tepid response from investors, many of whom believe the Glazer family, which bought the club in 2005, has saddled it with excess debt.

The financials were the first released since it was listed on the New York Stock Exchange last month.

Increased commercial revenue and a jersey sponsorship deal with General Motors worth $559 million that starts with the 2014-15 season are the causes of a bright financial picture portrayed despite losses in match-day and broadcast revenue. A United spokesman told the Press Association: "The results are consistent with what we expected. We strongly believe the outstanding results in the commercial sector demonstrate the huge potential the club has, and the financial outlook is very positive."
 

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