Manchester United fans have been voicing their concerns over the financial state of the club with some filing accusations that the Glazers were using their club to pay off debts elsewhere in their business empire. However the club's latest reports of healthy profits will go some way to ease the minds of the worried supporters.
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“Manchester United reported Q3 total revenues of £95m (Dhs 550m), in line with forecasts, but raised their earnings guidance for the full year to between £385m (Dhs 2.2bn) and £395m, a rise of around 15% on prior guidance," Joshua Raymond, Chief Market Strategist at www.cityindex.co.uk told Sport360.
The growth of these numbers is largely down to the team’s bright prospects for the coming year, with a return to Champions League football all but assured. Assuming there is a smooth progression through a qualification stage the club will increase both match day and broadcast revenues.
The effect of the Champions League football on Manchester United's finances cannot be understated. A lack of top-tier European action this year has resulted in match day revenues falling by £11.6m (Dhs 63m), while broadcast revenue has dropped by £13.9m in the quarter.
But before United fans get too carried away with their enviable financial situation, Raymond has this warning: "One word of note is the growth in gross debt, which rose to £395.4m (Dhs 2.3bn) in the quarter from £351.7m (Dhs 2bn) thanks to negative currency flows and this is something that needs to be guarded against, especially if the US Federal Reserve hike rates before the Bank of England."
