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Red News' take on the MUFC Financial results announced today. (24th September 2019)

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  • Red News' take on the MUFC Financial results announced today. (24th September 2019)

    Red News' take on the MUFC Financial results announced today.

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    1. United announced its full-year results. United’s financial year runs from June 2018 to June 2019.

    2. Revenue is at a record £627m (up from £595m in 2018). The increase is due almost entirely to Champions' League money. Last season, UEFA distributed its biggest ever pot (€2 billion) and United earned £83m from it. Winners Liverpool earned £98m. United earned an additional £4m per game in match-day income.

    3. With the loss of Champions’ League for this coming year (to 2020) revenue is expected to decline to £560m - £580m (the Europa League is much less lucrative - Chelsea received only £39m for winning that competition last season). Manchester City will overtake United as the biggest revenue earning club next year. This is a seismic change in power both on and off the field.

    4. The other big news from these results is that ‘commercial’ revenue has decreased slightly £275.1m from £275.8m the previous year. This is the first decrease for a very long time. Commercial revenue has more or less flatlined for four years and United have not been able to generate any substantial commercial growth. The shit-show on the pitch is really affecting off field deal making.

    5. The gimps take a mountain of cash out of United each year. Dividend payments of £18m to them personally. Finance charges on United’s debt are £25m (bear in mind the debt only existed to buy United’s shares for the six Glazer children). Total interest paid by Manchester United since the Glazers bought the club now well over £800 million. In addition, they are paid millions in Directors’ Fees.

    6. Wages are United’s biggest cost. United’s wage bill of £332m (an increase of £36m on the previous year) means it is the first English club to smash through £300m barrier. The average weekly wage is £160,000! Woodward’s abysmal running of the football side is really biting. Sanchez’s extraordinary salary plus handing out ludicrous contract renewals to the likes of Rojo and Jones are just a few examples. United’s wage to revenue ratios increased to 53% where 50% is the target. With no Champions’ League this season, salaries will drop by an automatic 25%. We await Liverpool and City’s 2019 figures but for 2018 their wages were around £260m each (If City’s figures can be believed). Barcelona has the highest wage bill in Europe with an eye-watering €487m or 70% of revenue. Real Madrid next on €395m.

    7. United’s press release reports a “net debt” of £203m. Ignore this figure. It’s misleading. The actual amount of debt stands at a whopping £511m. The other concerning thing is that Glazers are paying the interest only. There has been no meaningful reduction of debt since 2012.

    8. United again mention the “1.1 billion fans and followers”. Arf! It has little credibility and we’ll explain why in the next Red News with some alternative analysis from the world’s biggest market research company.

    9. On the conference call, Woodward talked about investment in the academy and scouting operation without saying that it was the Glazers that decimated costs after the 2005 takeover that left these operations bereft of resources. They deserve no credit for any belated investment. Arnold talked about investment in Old Trafford - this is limited to four hospitality suites and 118 new disabled viewing positions (work only just started). Full details in RN265. Arnold also said that United has a record 255,000 members.

    10. The only people who are enjoying Manchester United at the moment are the fans of other clubs plus the Glazers and Woodward who continue to take vast amounts of money out of the club whilst loading it with £500m of debt.
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