Financial results announced by Manchester United F.C. #mufc

The official financial results have been released this week, the figures which show profits, expenditure and a financial breakdown can be downloaded here as a pdf document.

Figures include total turnover of £73.8m (increase of 16.6 per cent on previous year) and EBITDA* of £19.3m (increase of 29.5 per cent on previous year).

There are a lot of different opinions on the internet in relation to the released figures.  Some seem to feel we are on the right track so to speak.  At the same time it's obvious that things can only get better when you consider where we are coming from.  By which I mean the £600 million debt the club was recently saddled with.  Andersred from the caf is unforgiving in his appraisal on his blog and examines the figures in great detail.

MarcRed of the official Man United forum summarizes thus: "
Revenue up by £10.5m to £73.8m. Staff costs up by £4.1m to £37.8m. This is down to all the new contracts and new buys in the summer plus an overall staff increase throughout the club.
Other operating costs up by a couple of million but profit before tax and interest up to £13m from £4.9m. Overall profit/loss however has gone from £2.7m profit to a £6.9m loss. This was due to the way the bond works, we gain/lose money based on the dollar/pound exchange rate, there was a gain last year and a loss this year. It's irrelevent to the company though because it doesn't get paid either way until the bond ends.
Summer spend totalled £47.1m ((De Gea, Jones, Young plus other payments for older buys)minus(O'Shea, Brown, Obertan and other receipts from older sales)). Cash balance is now £65m after summer transfers and the purchase of the bonds, plus some land aruond Old Trafford that the club also bought."


I'm no finance student nor an economist so I shall hve to draw my conclusions from opinions and reviews such as these.  This is what the internet does best though I feel,  lots of very different opinions from a great many perspectives. 

Here is an article on the Man United financial report from Reuters news agency.


* Q1 EBITDA up 30 percent to 19.3 mln stg

* Gross debt falls to 433.2 mln stg from 516 mln

LONDON, Nov 15 (Reuters) - English Premier League soccer champions Manchester United on Tuesday reported an increase in first quarter earnings and said it had reduced its debt, benefiting from a sharp rise in commercial revenue.
The club, which in September put on hold a planned $1 billion flotation in Singapore due to market volatility, said earnings before interest, tax, depreciation and amortisation (EBITDA) rose by 30 percent to 19.3 million pounds ($30.1 million) in its first quarter to end September.
Manchester United, which currently sits in second place in the Premier League, said its gross debt had fallen to 433.2 million pounds from 516.7 million.
The club, which is the most successful in English football, received permission in September for an IPO, through which it was looking to sell up to 30 percent of the club.
It had planned to use some of the proceeds to bring down its debt, a burden which had made the Glazer family, the club's U.S. owners, deeply unpopular with supporters.
The club said it had seen continued momentum in its commercial business and a recovery in seasonal and matchday hospitality businesses.
Total revenue rose by 17 percent to 73.8 million pounds, including a 22 percent increase in commercial revenues to 29.6 million pounds as the club reaped the benefits of a new 80 million pounds shirt sponsorship deal with Aon Corp.
Media revenues, including television rights, rose by 17 percent to 22.6 million pounds. Matchday revenues were up 10 percent to 21.6 million pounds.
Clubs across Europe are trying to increase their revenue streams in order to meet tough new financial criteria set by the game's governing body, UEFA.

 I am now very happy to say I have booked myself and 3 pals onto a coach for the trip down to Swansea,  it's gonna be another early start with a stop along the way.  I have my ticket too, it cost me over double the face value unfortunately.  I heard a rumour that the Manchester United seat allocation has been cut to 1700 just like the Liverpool game at Anfield so maybe this is why it cost me so much.  It should be an awesome day out though and I will do my best to get some decent content for you guys.   

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Glazers ownership is a financial blessing according to some. #mufc

Well what a long day Saturday was,  I was in the pub for around 8am ready for the trip to Everton.  Things got a little blurry by the time kick-off arrived!  From what I recall, I haven't watched the full game again yet,  we were fairly comfortable in possesion and I never really doubted the the Three points were gonna be gained.  I have to say it was a bit more low-key than I expected and I only saw one argument between fans as we left the ground.  Some old scouser telling my 18 stone pal how hard he was; it was funny actually.  Tonight we play Otelul at home and we need to win really so it should be a good game.  I am hoping to see Tom Cleverley again as I feel he really gives our midfield something different with his energy and short passing.  Tom likes to shoot from range too and can turn his man- something I feel only Anderson can do from our remaining midfielders.

Here's the latest finance story from the world press:

Glazers labelled as faultless.

Arsenal majority shareholder Stan Kroenke has told Manchester United fans to lay off the Glazers and start thanking them for the success they have delivered since their takeover.

Malcom Glazer and his family, who also own NFL club the Tampa Bay Buccaneers, have been criticised for the way that they have financed their purchase of United with loans partly secured against the club's assets. Ticket prices at Old Trafford have soared since the Americans took over.

Kroenke, who maintains he has no plans to secure loans against Arsenal in the way that Glazer has done at United, said: "Since they took over they have won and they have increased revenues by a huge amount.

"If I was a fan of that club, I would go there and go 'Wow!' because how could you do it any better?

He added: "We have a whole different philosophy I think in the States, maybe, but I think it's time maybe for everybody to think a little bit. I think they ought to think about who invests in these clubs.

"He (Glazer) took money out of the club. So what? (LA Lakers owner) Jerry Buss takes money out of his club. A lot of owners in the US do. No-one ever says anything about it.

"Did the Lakers win anything? Well, yeah. They did. How big's their revenue? Pretty darn good."

Before leaving a media briefing, Kroenke was keen to make one more point clear - his unwavering support for manager Arsene Wenger - a man whose future was called in to doubt after the club's shaky start to the season.

"Arsene Wenger is an unbelievable manager. I think he's a tremendous person. He is as good as there is," Kroenke added.

"You lose some games, you have some tough losses. It happens. You can't judge a manager on one game or on one stretch of games.

"You judge him over time. That's how the really good ones are judged."

Ticket prices at Old Trafford have soared since the Americans took over - a move which has caused the birth of a widespread protest movement against the family, who they want to see out of the club.

In Kroenke, however, the Glazers have a big fan. The American businessman, who became Arsenal's majority shareholder in May this year, thinks there is a big difference in how sports clubs are run either side of the Atlantic.

The 64-year-old maintains he has no plans to secure loans against Arsenal in the way that Glazer has done at United, but admits he is baffled at the way United fans have taken a severe dislike towards his compatriot given that United have lifted four league titles since they took over six years ago while also boosting revenue at the club.

The Glazer family have confirmed their commitment to Manchester United and insist they have no interest in selling the club.

United's owners made a short statement to accompany the release of second quarter financial results, in response to growing speculation about a massive offer for the club from the Qatar Royal Family.

It has always been stressed the Glazers view their United status as long-term, a point they are keen to emphasise.

"The board notes recent press speculation regarding a possible bid for Manchester United," said the statement.

"The owners remain fully committed to their long-term ownership of the club.

"No discussions have taken place, Manchester United is not for sale and the owners will not entertain any offers."

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United are looking to expand their global market even further as they make steps towards aquiring investors in Pakistan. The appeal of Manchester United is set to grow in the global market as the club plans an IPO float on the Singapore Stock Exchange.  The float has been delayed somewhat due to the unstable market economy of the moment.  However United are still finding ways to increase revenue and target ever more customers accross the globe. 

Here is a story from a Pakistani news outlet: nation.com.pk

KARACHI - Manchester United, a leading football club of England has signed a three-year deal with Zong, Pakistan's leading mobile telecom company that will give the Club's estimated 10 million fans in Pakistan a chance to see all the goals scored, as well as exclusive interviews, news and behind-the-scenes access.
Rizwan Akhter, Director Advertising and Promotions of Zong, said here Tuesday, "This partnership is one of a kind coming from Pakistan and the initiative that Zong has taken to team-up with Manchester United will only lead to prosperity, growth and triumph! For all the glory that is to come, we stand united, to take on all opportunities and victories together as one."
Chief Financial Officer of Zong, China Mobile Pakistan, Feng Tuixian said: "We see ourselves as an integral part of peoples' lives, providing support to over 12 million subscribers. We help them in their business or at work, bringing friends and families closer together, providing quality moments of leisure and recreation while remaining at the cutting edge of technology. We share Manchester United's commitment to be the best among competitors. I am sure this is the start of something very big indeed."
Commercial Director Richard Arnold of the club has said: "Zong is a great partner for United in Pakistan and partnering with Man United will give them high visibility as well as helping the club to communicate directly with millions of our supporters there."

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CEO of Forbes' magazines richest sports team is interviewed at Unicef campaign. VIDEO #mufc

Manchester United IPO would be 'beneficial', says CEO David Gill

The chief executive of Manchester United has said a potential flotation of the business would be "beneficial to the club" in his first public comments on plans for an IPO.

The chief executive of Manchester United has said a potential flotation of the business would be
Speaking on a trip to Senegal with Unicef, David Gill (left) told The Sunday Telegraph that the listing is "a potential" and the Glazer family, which owns the football club, will be "determining what the markets are telling us"

Manchester United were named as the richest football team this summer, topping the Forbes list of sports teams with 1.65 Billion GBP valuation.  This despite Abramovichs' murky millions which only saw Chelsea come 46th, while Bayern Munich (19th), AC Milan (34th) and Juventus (49th) also made appearances in the Forbes magazine annual Top 50 rich list.

United recently signed sponsorship deals with Aon and Nike worth around £380 million and have accumulated 333 million supporters across the globe.

Speaking on a trip to Senegal with Unicef, David Gill told The Sunday Telegraph that the listing "has potential" and the Glazer family, which owns the football club, will be "determining what the markets are telling us" amid rumours the IPO is on hold.

The Glazers are understood to be considering a flotation of a 25pc stake in the business worth up to $1bn (£643m) in Singapore.




















Mr Gill would not confirm the proposed terms of the IPO or whether it would be launched by the end of 2011 with global stock markets in turmoil.

However, he said: "It is not officially on hold but the owners will be taking appropriate advice from the advisers and determining what the markets are telling us.

"But I don't think it's the level of the market, it is the sheer volatility. That's the challenge."
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The United chief executive claims he is "not intimately involved in the process" and the IPO is a "decision for the owners".

He added: "I think the finances of the club are in robust health in terms of the bond interest against the EBITDA that we do have, so in that respect I am not concerned.

But it was an opportunity, and is a potential opportunity, to strengthen them even further. If the proceeds were by and large used to pay down the bond debt then that would take some of the interest costs out."

Mr Gill also played down the impact the IPO could have on the football club, despite the introduction of new shareholders from around the world who could press for dividend payments.

Interview by Graham Ruddick

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Marketing deal from Malaysian financiers comes ahead of IPO float on Singapore Stock Exchange. #mufc

 I've had a great week following United, the trip to Leeds was epic!  Apart from their fans chuckin' stuff at my head that is.  The atmosphere once inside the ground was fantastic and my throat has only just recovered from the singing.  I wish we could have continued the run into the Stoke game but yet more injuries ( Wayne Rooney and Chicharito) and an extremely dogged and physical performance from Stoke meant we could only get a point.
  Ah well, I'm off to Old Trafford on Tuesday for the Champions league match against Basel.  C'mon The Reds!

 The English Premier League has always been very big among Malaysians. Well established teams like Liverpool, Everton and Arsenal have their fans here, and let us not forget the ‘hottest’ team, Manchester United. Everyone loves a winner, and Malaysians are no exception. Manchester United has a near god like status here among Malaysian fans, so it is not surprising to find Malaysian brands linking up with English Premier League teams in terms of advertising.

The most recent addition to Malaysian advertisers in the English Premier league is none other than Mister Potato. Yes, the potato chip maker has decided to grab some publicity by tying in with Manchester United! But no, we won’t be seeing any jerseys with Mister Potato’s face on it anytime soon, the advertising will be on digital boards at Old Trafford, Manchester United's homeground.

The plan comes as the Premier League team plans an initial public offering in Singapore to raise $1 billion later this year, three people familiar with the IPO plans said last week. A stake of up to 30 percent may be sold, said one of the people. The club wants to cut financing costs and raise money that could be used for players. It spends about 45 million pounds ($74 million) a year to service a 500 million-pound bond.
The club, which Forbes magazine estimates is now worth $1.8 billion and Deloitte LLP says is the richest in revenue behind Real Madrid and Barcelona in a list published in February 2011, has about 190 million of its 330 million fans in Asia.

“The multitude of local events we run with global and local partners, and a prospective forthcoming tour of Asia in 2012, necessitate expanding our footprint both with people and office space,” Manchester United said in a statement earlier this month. “This is consistent with the huge appeal of Manchester United in the region, borne out of nearly 40 years of visiting.”

 Strategic Shift
 
The deal with Mamee Double Decker will allow the use of Manchester United’s Red Devil logo and images of star players such as Wayne Rooney and Javier Hernandez, according to one of the people familiar with the plan.
Under the U.S.-based Glazer family, the team’s owners, and former JPMorgan Chase & Co. banker Edward Woodward, the team’s chief of staff, Manchester United changed the way it deals with sponsors in 2008 to capitalize on its global appeal.
The club has signed regional and sector-specific deals as well as preserving the rights of global partners, allowing commercial revenue, excluding shirt sales, to grow 10-fold to 40 million pounds since June 2008.
The team’s principal sponsor Aon Corp. (AON) agreed to pay 80 million pounds for the right to have its name emblazoned on the team’s shirt for four years. The contract with Mammee Double Decker, will be the latest to be signed with an Asian company,

Asian Sponsors

Existing sponsors from Asia include India’s Bharti Airtel Ltd. (BHARTI), South Korean tire-maker Kumho Tire Co. and Thai beer brand Singha. In August, the club signed PCCW Ltd. (8) as its official telecommunications and broadcast partner for Hong Kong.
The team has won four Premier League titles and appeared in three Champions League finals, winning in 2008, since it was bought by the Glazers in 2005. A decline in performances on the field won’t affect its income from sponsors because none of the contracts carry success clauses.

Overall commercial revenue is close to passing 100 million pounds for the first time, which would bring it in line with the team’s broadcast and match day income. The club has 70 employees in a London-based commercial sales office and plans to relocate to a larger property. It’s also seeking to open an office in Asia. The team is seeking global partners in the energy, information technology and mobile-phone industries.
The club’s revenue puts it in third place globally for sales behind Spain’s Real Madrid and Barcelona. Last month, Premier League rival Arsenal announced record sales of 379.9 million pounds on property sales. Yet, the sales for the team’s soccer activities declined by 1.3 percent to 222.9 million pounds.

Story from Bloomberg.com

Images from HQworld.net

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Singapore Stock Exchange gives permission for a planned $1 billion float. #mufc

Business digest: Red Devils look to raise £635m by flogging 25 per cent of parent company shares.

The club wants to raise $1bn (£635m) to pay off some of its debts by selling about 25% of the parent company's shares.
United want to complete the process, which is known as an initial public offering (IPO), by the end of the year.
They will spend the next few weeks speaking to investors ahead of a road show to market the offer.
But analysts said the club might decide that it was not a good time to list.
"Volatile markets and weakening sentiment would be a major drawback for anyone who wants to list," said Vishnu Varathan from Capital Economic in Singapore.
"It's not the most ideal time to list, it's not a bull market. Tapping new sources of funds could be a challenge and pricing could come under pressure."
Manchester United is currently profitable, having reported a record annual operating profit of £110.9m for the year to the end of June 2011.
Headline pre-tax profit came in at £29.7m, compared with a loss the previous year.
The club is reported to be considering creating different classes of shares, some of which have lower voting rights but carry higher dividends.
The idea of that would be to maintain control of the club by the Glazer family, which bought Manchester United in 2005.
BBCnews

Meanwhile I have been having a ball at the United games, the Chesea game was pretty crazy with all the missed chances and drama.  I am gutted about the number of injuries being picked up too.  Another injury to defender Chris Smalling. A groin injury I believe.  Also injured was Javier Hernandez, after a collision with Ashley Cole. The young mexican striker was limping badly with what looked like a strained or sprained ankle.  I sincereley hope its not a ligament injury or anything major as he is in great form.

Tomorrow is the Leeds away fixture and I'm ready as I'll ever be.  Barring any mis-haps at the match I will report back soon! 

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Plans to sell shares emerging from Dow Jones. #mufc

This story emerged towards the end of the 2011/12 Premier League season and has now resurfaced again.
Talk of Manchester United going back on the market may lead to a change of ownership which to be honest, I am not sure whether it's good or bad news.  The Glazers have many detractors but apart from ticket price rises I can't really think of anything to criticise them over.  Sir Alex has always backed them so I see no real reason to feel unhappy.  A much greater fear for me is that Manchester United Football Club might become the trophy-piece of an Oligarch, Sheik, Gangster or some other kind of Royal brat.  Anyway her's the article, ramble complete.

Manchester United plan IPO in Singapore: Dow Jones

The English Premier League giants Manchester United plan to raise one billion US dollars in an initial public offering (IPO) in Singapore later this year, Dow Jones Newswires reported Tuesday.

The share sale is planned for the fourth quarter, Dow Jones said, quoting people familiar with the situation.
Credit Suisse Group has been mandated by as sole global coordinator and bookrunner on the deal, said the the sources, who were not named. One source said other banks are expected to be added as bookrunners later.
The club, which was once listed on the London Stock Exchange as Manchester United PLC, had initially planned to list in Hong Kong.
But the club changed is its mind and now prefers to list in Hong Kong's regional rival Singapore, according to the Dow Jones sources.
United were delisted from the London exchange in 2005 after US tycoon Malcolm Glazer bought the club.
A Singapore listing by United, ranked by Forbes earlier this year as the world's most valuable football team in 2011 with a value of $1.86 billion, is expected to boost the city-state's credentials as a financial centre.
Analysts said United have chosen to list in Asia because of the club's popularity in the football-mad region where it has legions of fans.
United have been seeking ways to cut financing costs and raise money to expand their lucrative business, as well as acquire players to strengthen the club.

Article from Yahoo news.

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