08/10/2010

More MUFC Financial Results Coverage

GUARDIAN: David Gill says Manchester United are healthy despite record losses


GUARDIAN: Manchester United's owners face fresh protests after record £83m loss
Supporters' Trust says results prove ticket and TV subscription money is servicing debt rather than players and facilities


BBC: Crunching the numbers at Old Trafford
Includes this snippet:
"When the Red Knights  were looking at raising the money to launch a bid for the club earlier this year it was reported the Glazers would only sell for £1.5bn, arguing there was still huge potential for growth.

But if Liverpool's sale is the best and most recent example of market value then it is easy to understand why the Red Knights dropped their interest. Liverpool's operating profit last year was £35m, meaning the club would be sold for roughly 8.5 times that amount.

If that same equation was used for United (operating profit £100m), it would value the club at £850m - way short of the Glazers' supposed asking price."

GUARDIAN: Manchester United fail to heed lessons of Liverpool's sorry decline
Tremendous piece by David Conn - we expect nothing less from the fans' champion.

Includes this snippet on the final admission that debt is damaging the club at Liverpool - although of course it is no problem at United is it?
"Purslow, in his interview a fortnight ago, the first breach of the public front that the directors were working with Hicks and Gillett, not in spite of them, finally stated as barmy the assertion fans have been expected to swallow, that huge interest payments have no impact on clubs. Acknowledging that Liverpool are indeed doing well commercially, with Anfield full of fans paying a big whack for their seats, Purslow said: "Far too much of that benefit currently services loans, interest costs and bank charges. Can we afford to meet them? Just about. Do I wish that every penny spent on interest was available to spend on players? Passionately. And every minute of my working day I look for the day we are able to reduce our debt, freeing up our profits to be able to invest in players."

Broughton, in interviews he gave this week when launching his onslaught against Hicks and Gillett, whom he described as having "no credibility", said of their leveraged (debt-based) takeover of Liverpool: "If you are leveraged, that's bad for a football club." So there it was: the plain truth at last."