It just keeps getting better....

Marching

Somehow still supports Leeds
Joined
Apr 21, 2001
Messages
39,656
...for MU PLC
Manchester United might be having a poor start to the season on the pitch, but the club's finances are in good shape.
The football club has announced a sharp increase in annual profits to £32.3m ($50.5m), compared with £21.8m last year.

The club said its turnover was up thanks to the new Premier League television deal and European Champions League prize money for reaching last season's semi-finals.

And it said it made trading profits of £17.4m by selling players such as Japp Stam, Andy Cole and Dwight Yorke.

But players' wages accounted for 48% of the group's turnover for the year and the wages bill grew 40% to £70m.

This was partly because of new contracts signed with David Beckham, Roy Keane and manager Sir Alex Ferguson.

The chairman Sir Roy Gardner said the past year had been exceptionally challenging for the football industry because of the media focus on players' wages and because of media rights values.

But he said the results reflected the enduring appeal of top-flight football, and Manchester United in particular.

Nobody could compete with them on the pitch for 10 years, until Arsenal came along last season, and still nobody can compete with them off the pitch.

The MU awesome money making machine rolls on.
 
Yet we couldn't afford Escude and a 4th striker. <img src="graemlins/houllier.gif" border="0" alt="[Houllier]" />
 
I guess that's what cuddly pete's been waiting for. Bring on the recruits! :D
 
Originally posted by Neil Thomson:
<strong>Yet we couldn't afford Escude and a 4th striker. <img src="graemlins/houllier.gif" border="0" alt="[Houllier]" /> </strong><hr></blockquote>


Can afford, yes.

Willing to be ripped off, no.
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Originally posted by Livvie20:
<strong>


Can afford, yes.

Willing to be ripped off, no.</strong><hr></blockquote>
And we weren't ripped off with Rio were we? Escude is going to be worth a lot more one day than he is now. As for PDC, there are just no excuses.
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Money is not everythin', we need the trebble this season... :cool:
 
Originally posted by Neil Thomson:
<strong>
And we weren't ripped off with Rio were we? Escude is going to be worth a lot more one day than he is now. As for PDC, there are just no excuses.</strong><hr></blockquote>

Agree about PDC.

And about Rio. But with Rio, we had very little choice - at the time we needed a defender and time was running out.

I don't think the board will make a habit of paying over the odds.
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Arguing the toss over an extra million for Escude after the player had stopped training with his team and in his heart was already a United player, when he's only going to increase in value, was bad business.
 
Originally posted by Neil Thomson:
<strong>Arguing the toss over an extra million for Escude after the player had stopped training with his team and in his heart was already a United player, when he's only going to increase in value, was bad business.</strong><hr></blockquote>

I think you're right.

But I still think the board are drawing a line and won't be budged.
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We all recognise that our squad is light, it just hurts to then see a record profit announced. Makes me think we're a business first, and football club second, and that makes me sick.
 
Originally posted by andy27457:
<strong>Don't forget, most of the profit has just been spent on Rio</strong><hr></blockquote>
Not sure, but considering that Yorke is down on those figures, I would think at least the first installment of the Rio money is included too.
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Originally posted by Neil Thomson:
<strong>We all recognise that our squad is light, it just hurts to then see a record profit announced. Makes me think we're a business first, and football club second, and that makes me sick.</strong><hr></blockquote>

feckin hell how many times have you seen escude play to know hes gonna be worth big money in the future?

as for PDC united were not going to make him one of there top earners so he could just sit on the bench

so we have bought

rio 30mil
veron 28mil
RVN 19mil

in the past couple of years yet your moaning because we didnt want to spend more money than we had to on 2 players,one unproven and one whos got about 6 months left in him who would be sat on the bench for the most part

now if it was somebody like cisse and they were haggling over a few mil i would understand but not this

get a feckin grip
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Originally posted by RUDDY:
<strong>

feckin hell how many times have you seen escude play to know hes gonna be worth big money in the future?

as for PDC united were not going to make him one of there top earners so he could just sit on the bench

so we have bought

rio 30mil
veron 28mil
RVN 19mil

in the past couple of years yet your moaning because we didnt want to spend more money than we had to on 2 players,one unproven and one whos got about 6 months left in him who would be sat on the bench for the most part

now if it was somebody like cisse and they were haggling over a few mil i would understand but not this

get a feckin grip</strong><hr></blockquote>
Clearly we want Escude, and came close to signing him, as we should, as he's the star of the French U21 side, and there are few good full backs about. To let that deal slip for the sake of a million, when we're being forced to play players like O'Shea out of position there, or Phil, is a joke.

You can talk all you like about the money we've spent, but the Net amount spent is nowhere near as impressive. Notice we made a profit on transfers, yet a loss in terms of size of squad. I'd rather we did some shrewd business on quality young players than blow it all on some one like Veron.
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Originally posted by Neil Thomson:
<strong>
Clearly we want Escude, and came close to signing him, as we should, as he's the star of the French U21 side, and there are few good full backs about. To let that deal slip for the sake of a million, when we're being forced to play players like O'Shea out of position there, or Phil, is a joke.

You can talk all you like about the money we've spent, but the Net amount spent is nowhere near as impressive. Notice we made a profit on transfers, yet a loss in terms of size of squad. I'd rather we did some shrewd business on quality young players than blow it all on some one like Veron.</strong><hr></blockquote>

Agree with all your points in this thread. Every time you used to watch a game or read a report the commentator would always make some statement about how you could point at the strength of United just by who they had sat on the bench to come on as replacement or as an alternative tactic.

Our bench never gets a mention any more!

The PDC still annoys me, he gets paid a pile of money playing in a team that's going no where yet he is still so hungry and determined to play well...perfect united material!!!
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Completely agree over the DiCanio transfer. We refused to pay the money for DiCanio and then 2 months later going out and spending a few million more on Diego Forlan.
We lost Cantona and Teddy stepped in
We lost Teddy and ?????
 
Originally posted by An Extremely Boring Man:
<strong>

The Rio transfer is included in the accounts</strong><hr></blockquote>

I don't believe that's true. It would mean we made a 60 million profit before deducting the Rio transfer.
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Originally posted by Neil Thomson:
<strong>
Clearly we want Escude, and came close to signing him, as we should, as he's the star of the French U21 side, and there are few good full backs about. To let that deal slip for the sake of a million, when we're being forced to play players like O'Shea out of position there, or Phil, is a joke.

You can talk all you like about the money we've spent, but the Net amount spent is nowhere near as impressive. Notice we made a profit on transfers, yet a loss in terms of size of squad. I'd rather we did some shrewd business on quality young players than blow it all on some one like Veron.</strong><hr></blockquote>


At the time, 28 million for Veron was thought as too much for a player of his proven ability. Maybe not a bargain, but certainly not a rip off either.
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It's no use for keep piling up money but fail to win anything. Now is there any excuse for not recruiting a few new players when the transfer window open again?
 
Obviously the Powers That Be at Old Trafford went to the George Steinbrenner School of Business. That is how the Yankees built their dynasty and continue to be contenders year after year. No wonder United wanted to have an affilation with them. :p
 
I understand that a plc has to try to make a profit or at least break even. And we've actually splashed out quite a bit of cash these last couple of years. What I find strange is how we'll spend £28 million on Seba and £30 million on Rio and then we'll refuse to spend £2.5 to £3.5 million on Di Canio unless Yorke leaves. Especially when that little last bit of investment could mean the difference between winning something or not...or if we had lost a few more matches last year possibly the difference between qualifying for the Champions League or not (which seems to always be worth about £20 to £25 million a year to us these days). Compared to the amount at stake and how much we've already invested in the team, £3 million seems like a paltry sum of money to me.

The Escude deal I can understand a bit more. I thought the 2 sides would reach a compromise of about £3.5 million. But when it fell through, I figured United probably didn't want to look like a soft touch after the Rio deal and that may be why we refused to budge. We must have thought Escude was being overvalued. And whereas we were desperate for Rio and didn't have much choice but to cave in...Escude was a different matter.

I still hope that a striker is at the top of Fergie's list in January. Although we do need another full-back, I'd rather try to get through the season with what we've got there than to try to finish the season with only RVN, Ole and Diego. When Wes comes back in a couple of months, we'll have 4 players who can play right back and, although it's not an ideal situation, Phil and JOS can cover at left back. If we don't buy another striker though, I think it's going to end up really costing us in the end.
 
Originally posted by Red15:
<strong>I understand that a plc has to try to make a profit or at least break even. And we've actually splashed out quite a bit of cash these last couple of years. What I find strange is how we'll spend £28 million on Seba and £30 million on Rio and then we'll refuse to spend £2.5 to £3.5 million on Di Canio unless Yorke leaves. Especially when that little last bit of investment could mean the difference between winning something or not...or if we had lost a few more matches last year possibly the difference between qualifying for the Champions League or not (which seems to always be worth about £20 to £25 million a year to us these days). Compared to the amount at stake and how much we've already invested in the team, £3 million seems like a paltry sum of money to me.

The Escude deal I can understand a bit more. I thought the 2 sides would reach a compromise of about £3.5 million. But when it fell through, I figured United probably didn't want to look like a soft touch after the Rio deal and that may be why we refused to budge. We must have thought Escude was being overvalued. And whereas we were desperate for Rio and didn't have much choice but to cave in...Escude was a different matter.</strong><hr></blockquote>


I think that's the part of accountency which only the professors can understand. ;)
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I read that Liverpool FC's turnover is £82m with wages of £50m - comparing this to MU, just how will anyone be able to compete in the transfer market?
 
Originally posted by marchingontogether:
<strong>I read that Liverpool FC's turnover is £82m with wages of £50m - comparing this to MU, just how will anyone be able to compete in the transfer market?</strong><hr></blockquote>
I find the abbreviation MU offensive, please use MUFC in future as this is an MUFC forum. ;)
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Originally posted by Neil Thomson:
<strong>
I find the abbreviation MU offensive, please use MUFC in future as this is an MUFC forum. ;) </strong><hr></blockquote>

<img src="graemlins/lol.gif" border="0" alt="[Laugh Out Loud]" />
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Originally posted by Red15:
<strong>I understand that a plc has to try to make a profit or at least break even. And we've actually splashed out quite a bit of cash these last couple of years. What I find strange is how we'll spend £28 million on Seba and £30 million on Rio and then we'll refuse to spend £2.5 to £3.5 million on Di Canio unless Yorke leaves. </strong><hr></blockquote>

I agree with the plc on their buying principles; it is same policy that Real Madrid has: buy one class player a year as opposed to 2-3-4 average ones.

Now, unfortunately Veron hasn't lived up to his billing, but that's not plc's fault.
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Don't forget those figures are pre-tax. The actual figure will be quite substantially lower, but still more than enough to have gone ahead with the DiCanio transfer
 
PLC,PLC,PLC. Football is in for big trouble soon mainly due to the palyers wage demands etc, etc, etc. Look at Italy and Spain the writing is on the wall. If a club like Leeds (Top half of Premier) has financial troubles what about the rest. United maybe in a league of their own off the pitch, but god help us if theres no competition on it in two years time...!

Football is a business we all know that, it's a bloody unrealistic one at that. How can clubs continue when they're overheads are so bloody high and dependant upon qualification for Europe...? The longterm answer is they can't. Barca have offloaded Rivaldo, why because his wages are too high and they won feck all last year. If Barca are in trouble what chance the rest...?
 
That's why you need good governance. Madrid and Barca have always had an open check book because the city always bailed them out. Now they can't afford to, at least Barca can't anyway. See what happens when the good times end? Good job the plc know how to run a business unlike so many others. They kept the discipline when the money was good, and now its paying off.
 
Originally posted by spinoza:
<strong>That's why you need good governance. Madrid and Barca have always had an open check book because the city always bailed them out. Now they can't afford to, at least Barca can't anyway. See what happens when the good times end? Good job the plc know how to run a business unlike so many others. They kept the discipline when the money was good, and now its paying off.</strong><hr></blockquote>

Madrid have financed a couple of deals by selling off training grounds. not the most stable of existances
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Originally posted by Ever hopefull:
<strong>

Madrid have financed a couple of deals by selling off training grounds. not the most stable of existances</strong><hr></blockquote>

they sold what had (supposedly) become prime real estate to whoever for cheaper parcels of land. it's not like they're out of a training ground. of course there was a bit of talk about the real value of that orig training ground but...
on the face of it, it makes perfect sense. buy low, sell high??
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Originally posted by fortyseven:
<strong>

I don't believe that's true. It would mean we made a 60 million profit before deducting the Rio transfer.</strong><hr></blockquote>

It wouldn't be a profit if we already spent it
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