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Last Updated: Friday, 26 January 2007, 00:01 GMT
Manchester United's profits flat
Manchester United's Swedish forward Henrik Larsson
Manchester United is chasing bigger profits this season
Football club Manchester United has reported flat profits for the season 2005/06, the first in which the Glazer family was at the helm.

Operating profit for the 12 months to 30 June 2006 was 49.7m ($98m), against a 46.1m profit in the prior reporting period, which only covered 11 months.

United was hit by the impact of exiting the Champions League at the first stage - saying it cost them 2.8m in revenue.

CEO David Gill said the club was now poised for "dramatic revenue growth".

'Sell-out crowds'

US tycoon Malcolm Glazer bought United for 790m in 2005, in a deal that was heavily financed through debt, much of it transferred onto the club.

Since June 2006 the club has been reaping the benefit of its four-year 56.5m shirt sponsorship deal with AIG, and seen match day revenue increase with the growth in its Old Trafford stadium capacity from 68,000 to 76,000.

In addition, the latest round of domestic TV football rights, signed last summer, have generated 1.7bn ($3.1bn) in total for Premier League clubs.

The new Premier League TV deal for 2007-10 could see a 65% increase in Premiership TV money for every top flight club, according to Barclays Capital.

After the club revealed its latest figures Mr Gill said: "With sell-out crowds at the extended Old Trafford and record sponsorship deals like AIG, Manchester United can look forward to a future marked by dramatic revenue growth."

Transfer deal

Profit before tax was 30.8m, up from 10.8m, with 12m of that secured from the sale of Nigerian youngster Jon Obi Mikel to Chelsea.

And turnover at United, which last year lost its place at the top of the Deliotte world rich list of football clubs, was 165.4m, against 157.2m in the period before.

United said that during the 2005/06 period it paid 1.8m in fees to agents, against 2.6m in the previous 11 month period.

The club also said it had 64,000 season-ticket holders and a waiting list of 10,000 more.

In July last year the Glazers were also able to secure a refinancing package which saw loan charges on sums, borrowed by the Glazers to buy the club, fall from 90m ($164m) a year to 62m.

As part of the restructuring plan, overall borrowings went up from 580m to 660m, but the club reassured fans - many concerned at the level of debt - that the moves were "good housekeeping".




SEE ALSO
Man Utd deal cuts interest bill
18 Jul 06 |  Business
More Glazers join Man Utd board
18 Jun 06 |  Man Utd
Man Utd sign 56m AIG shirt deal
06 Apr 06 |  Business
Man Utd dethroned as richest club
16 Feb 06 |  Business

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