8 Oct 2010Manchester United profits 'drained by debt interest'

Football Clubs News | Football Finance News

Manchester United made record operating profits during the last financial year, but still posted significant losses due to repayments on the Glazer family's massive leveraged debts, it has been claimed.

According to the Guardian, the English Premier League side's profits broke the £100 million mark for the first time, but the bond issue and mounting costs of their arrears pushed the football club into a net loss.

Pre-debt profits were boosted by rising ticket prices and a rise in revenues brought in from overseas operations, but football fans - among whom dissent has risen in recent months - are unlikely to be assuaged by the announcement.

However, the club are likely to point to the increased turnover as evidence that they can continue to generate enough money to invest in players and infrastructure despite their debt, which is estimated to stand at over £700 million.

Although each of Manchester United's home fixtures has sold out so far this season, the club admitted in the summer that they had fallen short of their season ticket sales target by around 2,200.

Written by Mark Thompson

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