It has also reported a decline in its debt of £69 million, down to £439 million from £508 million. The reduction in debt was mainly due to a buyback of bonds that were sold as part of a £500 million refinancing initiative launched two years ago.
The positive finances for the second part of 2011 are even more vital as the Premier League football club have been knocked out of the final stages of the UEFA Champions League, one of the club’s main sources of revenue. It is likely that the club will see a decline in revenue in the next six months as a result of their Champions League exit.
2011 saw Manchester United crowned champions of the Premier League but they are under increasing pressure from local rivals Manchester City and currently trail them in second place as the Premier League season enters its climatic three months.
Manchester United were placed third behind Real Madrid and Barcelona in Deloitte’s annual football financial tables. Manchester United headed that particular league table for eight consecutive years from the late 1990’s to the early 2000’s. Real Madrid have been the top global earners for the past seven years.
In 2011, United’s match day revenues rose from £52.4 million to £54.5 million, its commercial revenue increased to £58.6 million from £50.4 million and its media revenue rose from £53.7 million to £60.9 million.
Its total operating costs increased from £96.9 million to £110.8 million and net spending on players also rose from £11.7 million to £47.9 million.
Manchester United were taken over by the Glazer family in 2005 and the club’s supporters have been critical of the level of debt the club has had to take on as a result of its links to the Glazer’s other businesses.
The Champions League exit will definitely affect the figures for the next 6 months. If anything the next figures released will show just how important to competition is to clubs like United.
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