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Manchester United lose 83.64m and spend more on interest than players

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08 Oct 2010 14:56:35

Manchester United lose 83.64m and spend more on interest than players

Manchester United have become the first English club to crash through the £100million profit barrier - while at the same time posting an £83.6m loss. The figures will be of huge concern to supporters who believe that the club's debts are a barrier to competing with Barclays Premier League rivals such as Chelsea and Manchester City. United's latest accounts show that they have spent £40m on interest payments - more than £22m net spend on new talent this summer at a time when rivals City splurged more than £100m on talent. Dark clouds: The 'waste' of money at Old Trafford is certain to anger fans The losses are in part down to a hefty one-off cost for the £504mbond issue earlier this year. But hefty revenues show how the club remain one of the world's most attractive sporting organisations. Unitedinsist £80m loss is 'very good' as Gill denies pressure to sell Rooney A vocal section of United supporters have become increasingly angryat how the club has been run since the Glazer family took over in 2005. But United will point to the massive commercial growth in the latestfigures, following the implementation of their 'territory specific'approach. The £11.5m increase in turnover to £81.4m proves howsuccessful that plan has been. It also debunks the idea that the negative headlines the Glazerfamily ownership has caused have deterred companies from associatingthemselves with United. Media revenues have also risen by £5.1m, to £104.8m, making it thelargest area for the club now matchday revenues have fallen to £100.1m. Slow start: Manchester United haven't enjoyed a particularly fast start to the Premier League campaign Wages rose by seven per cent to £131.7m, while United's overall debt rose to £521.7m. United's overall turnover is £286.41m, which contrasts sharply withManchester City, who seven days ago celebrated hitting a turnoverfigure of £125m. It shows the vast gulf that still exists commerciallybetween the neighbouring clubs and the work City must do to getsomewhere close. There was a massive reduction in revenue gained from the disposal ofplayers following the world record sale of Cristiano Ronaldo to RealMadrid in the summer of 2009. Manager Sir Alex Ferguson continues to tell United supporters thatthere is money to spend on players if he wants to use it and has indeedinvested £7m on the Portuguese prospect Bebe in recent weeks. Taking a stand: Fan anger at the Glazer regime has manifested itself into protests over the last 12 months But another summer passed without a stellar signing, as Fergusoninstead turned to other young prospects such as Mexico striker JavierHernandez and defender Chris Smalling in a year that saw cash raisedfrom the departures of players like Zoran Tosic, Fraizer Campbell andBen Foster. The Glazers themselves have certainly never given any indication ofbeing unduly worried by the huge debt burden and the successful bondissue earlier this year provided far greater flexibility with theirfinancial dealings, even if the bond, to which United are committed topaying an annual interest rate of 8.75per cent, has to be paid back in2017. Crucially, there is no mention within the accounts of any moneybeing taken out of the club by the Glazer family to pay their£200m-worth of PIK notes that are now attracting interest at 16.25percent. Supporters who are opposed to the entire Glazer regime will seize onthe losses as proof of their claim that United are being deprived oftransfer funds due to the debt the club acquired as part of the processin which their owners took control of the Old Trafford outfit.  United insist £80m loss is 'very good' as Gill denies pressure to sell RooneyVan der Sar will retire at end of the season, says Old Trafford coachManchester United pay more on interest on debt than new starsMANCHESTER UNITED FC


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