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Friday 03rd of July 2009
April 10, 2009

Manchester United’s debt rises to £700m


by Peter Charalambous
”Manchester

Despite what has been a successful season thus far with the potential of an unprecedented 5 trophies, Manchester United’s debt rises to £700m as the club’s parent company makes substantial losses.

Red Football, which is a Joint Venture, is set to make a £44.8m pre-tax loss for the year to June 2008, even though during that same period, Manchester United won the Premier League and Champions League titles.

Red Football’s debt has now increased from £604m to £649.4m, even though group turnover was an English club record at £256.2m, which was up from £210m the year before.

Match day revenues were increased from £92.6m to £101.5m with media income almost doubling with commercial operations bringing in £64m.

The Manchester United brand is growing with further potential to develop the club’s media rights.

However during the season insurance firm AIG have announced that following the bailout by the US government, they will not be renewing the sponsorship deal, which is set to run out in the 2009/10 season.

On a positive note, the club managed to sign new deals with a number of new corporate partners including Saudi Telecom, Diageo, and the Seoul Metropolitan Government.

Irrespective of the turmoil off the pitch, the club still managed to make a profit of £21.8m on player transfers.

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Tags: AIG insurance, corporate deals, , Manchester united

 

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