Penny for the Glazer? MUFC Confirm Fall in Profits

Penny for the Glazer
By Chris O'Brien
January 24 2006

MUFC have announced a significant drop in profits for the previous financial year. Operating profit fell to £46million, with a lack of success on the pitch seemingly costing the club millions of pounds in television revenue and prize money.

Manchester United Football Club have announced a reduction in profits for the 2005 financial year.
A drop in television revenue, Chelsea's dominance of the domestic game, a boycott on merchandise from a faction of supporters and the early elimination from Europe have all played their part in falling profits.

However, the club still claim they are the richest in world football.
"The Glazer family are proud to announce Manchester United as the richest football club in the world." read a statement from the Glazer's themselves.

Though, to the standard football fan such statistics mean little, a club statement has revealed:

• Operating profit fell to £46million, which is an official fall of 20% on the previous years.
• Television takings have fallen by over £14million, a result of the club's only limited success.
• There was a huge drop in the amount of agent fees paid out to players, down some 60% to £2.2million.

Meanwhile, the recent news that Vodafone have dropped-out as the club's main sponsor has seen a contract worth £9millon a year terminated a lot earlier than expected. Supporters have been left a little unsettled by the move, particularly after the unpopular Malcolm Glazer takeover which includes a seemingly haphazard and risky business plan that could plunge the club into unthinkable amounts of debt.

Time will tell.