Ironically, "Not For Sale"
Manchester United simultaneously released their latest quarterly financial figures and a “not for sale” statement as the Glazer family stood firm in the face of the “Green and Gold” campaign and the Red Knight consortium hoping to buy them out.
The “not for sale” statement was emphatic and the figures better than many would perhaps have expected. Results for January to March show a cut in debt from £543.3m to £520.9m, while net assets stand at £794.9m and the club has cash reserves of £95.9m. The club also announced that in the nine months to March, year-on-year revenues were up 13.5% from £193.3m to £219.3m.
For the supporters claiming that the debt accrued by the Glazer family in acquiring the club was unsustainable these figures make grim reading – on the surface at least. What isn’t included is another £200m+ of debt that resides with a parent company yet is still essentially Manchester United debt.
At the same time, losses for the quarter rose from £5.87m to £65.94m, thanks in the main to various financing charges and costs, and the last annual accounts in July 2009 showed the overall debt to be £716.5m.
Rising revenue across the board also looks good, but match day revenue – tickets, drinks and food for the most part – still makes up the largest income stream for the club, outstripping global commercial and TV income.
Groups like the Red Knights, the Manchester United Supporters Trust (MUST) and the Independent Manchester United Supporters Association (IMUSA) will rightly point out that it is the match going fans that are paying through the nose to cover these debts and that the club’s claims that their global commercial activities are helping are somewhat weak.
Nevertheless, MUFC chief executive David Gill claimed that club had not yet fully maximised its revenue streams from global commercial opportunities. This is partly true. The opportunity presented by live streaming of goals to mobile devices is as yet untapped and the Glazer family believe they can negotiate for such services outside of the Premier League around the world. It could prove to be a massive revenue stream if this proves to be the case.
Gill also said:
“We can invest in the players, invest in the training ground – we have plans for that – invest in the stadium and do those things. The money is definitely there. We are not in a situation where Alex is restricted in what he wants to do with the club.”
This won’t be enough to appease the fans but the Glazers apparently remain “fully committed to their long-term ownership of the club” and will “not entertain any offers” which many have taken to mean the Red Knights’ plans are now dead in the water.
Time will tell on that one but for now the quarterly figures look better than they have in a while and it seems the Glazers are not being put off by supporters who turn up at matches sporting green and gold and singing anti-Glazer songs. And nor will they be – as long as they continue to pay for their tickets.
