Debt down! Wages up! £80m transfer warchest! All you need to know about Man United’s finances

first_imgManchester United have reported a record annual revenue of £433.2million for last season. Here is a quick guide to the club’s 2012/13 balance sheet…– This is the club’s total income. It does not include any outgoings, such as wages, taxes and transfer fees. – United recorded a profit of £23.8m for 2013/14, down from the previous year’s £146.4m (a sum that was entirely due to a one-off tax credit from American assets of £155m).– Spending on new players was £78.9m net, including the signings of Juan Mata and Maroune Fellaini, but not those who have joined since June, including Luke Shaw, Angel di Maria, Marcos Rojo, Daley Blind and Radamel Falcao.– United’s wage bill went up by 19 per cent to £214.8m, an increase of £34.3m.– Sacked manager David Moyes and some members of his coaching team were paid £5.2m compensation.– Underlying profits (EBITDA) provide a guide to corporate financial health, and in United’s case these were £130.1m for 2013/14, compared with £108.6m the previous season. This is expected to fall to £90m-£95m next year.– It is estimated that United’s revenue for the 2014/15 season will be somwhere between £385m to £395m, which represents a drop of £38m to £48m, due to a lack of Champions League football.– The Red Devils’ sponsorship income increased by 49 per cent last year, with a number of new deals. Commercial income now makes up 44 per cent of the overall revenue.– Gross debt is down to £341.8m from £389m, and the cost of servicing that debt down to £27.4m. In 2010, five years after the takeover, the debt had risen to £710m from an initial £660m. Since 2010, large chunks of the debt have been paid off. 1last_img

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