Manchester United Reveal Huge Loss

Football - Manchester United v Arsenal Barclays Premier League - Old Trafford - 16/5/09..Manchester United's Cristiano Ronaldo celebrates winning the league with the trophy Photo via Newscom
While their bitter rivals Liverpool are sweating over a takeover that could decide their future, Manchester United have today revealed some worrying financial results of their own.  The club which for so long was the financial powerhouse of the Premier League lost a staggering £79.6 million.

The news will only add further pressure on the clubs controversial owners. Ever since their takeover of the club in 2005 the Glazer family have hardly had the most welcoming reception from United fans, with a ‘Green and Gold till United are sold’ protest launched last season.

But the Glazers have always insisted a sale was never going to be an option and it seems as if the figures released today haven’t changed their mind. Current Chief Executive at United David Gill even described the figures as “very good”.

He said: “There is no pressure at all to sell any star player whether it is Wayne Rooney or X, Y or Z. I can categorically say that. I can’t speak for any other club but the United fans should not be concerned.

“We have a long-term financing structure in place, excellent revenues that are growing, we are controlling our costs – total wages are 46% of turnover – and we can afford the interest on our long-term finance.”

Now I’ll admit that I am no financial expert but to me a loss of nearly £80million doesn’t sound “very good”.  What made the Glazers so unpopular in the first place was that their proposed business plan accepted that there would be a big debt and therefore the club would make losses as they looked to pay back the debt.

This threatened United’s on the field point of view. It meant that the big name signings might dry up and that they would have to find a new way of staying at the top of the English league.

In many ways this is exactly what has happened. In the Glazer era only Dimitar Berbatov has arrived for a top end transfer free, and United boss Sir Alex Ferguson has turned his attentions to younger players for the future, as well as the development of his academy graduates such as Daren Gibson and Johny Evans

But in my opinion two things have probably prevented failure during the Glazer ownership. The Glazers arrived at a time when Ferguson was building the Cristiano Ronaldo era and in many ways success was inevitable, couple that with the longevity of the likes of Paul Scholes and Ryan Giggs, and Ferguson has been able to cover up the lack of big name signings.

However Scholes and Giggs are ageing, and Ronaldo has already gone, you have to feel that United will need to find funds for replacements. This will lie with the Glazers which will mean them digging in to their pockets.

When the Glazers have to dig in to their own pockets I highly doubt they will be saying a loss of £79million is good.

9 thoughts on “Manchester United Reveal Huge Loss”

  1. While I hate the Glazers as much as any Utd fan should, to be fair, you forgot to mention the summer when we brought in Hargreaves, Nani, Anderson, and Tevez — 60+ million… that was under the Glazers.

  2. lets be honest. the lack of big signings is already showing big time. the fact that united have failed to win away from home and the fact that they look almost shambolic in front of goal and in midfield is testimony to the gap that is developed between the likes of chelsea and united. chelsea and city are on the way up. arsenal is steady and the likes of united and liverpool are on the downgrade. the united slip-up may not be as pronounced as liverpool but it will be nothing short of a miracle if united win the premiership this season. i dont think anyone except die-hard united fans think that they stand a chance in the CL so that is out of teh question. United is the next liverpool.

  3. This is a problematic post, to say the least. Six transfers over the 15m line hardly speak to a lack of big buys – only Manchester City have done more 15m+ transfers than United since 2005, and all of those were in the last two years.

    Furthermore, what one has to remember is that losing money in a given year is not inherently bad. One has to, as the saying goes, spend money to make money. Yeah, the Glazers run a high-risk investment strategy with Man U. But this financial report is not evidence that it is failing – it’s evidence that they’re running a high-risk leveraged investment strategy.

  4. Financially, we have been in a period of DELEVERAGING since 2008; it’s not a good time to run “a high-risk leveraged investment strategy.” The Glasers are swimming against the current and might drown.

    1. It’s true. A lot of the overleveraged got badly burned in the 2008 crisis. That said, the Glazers are likely of the view that the worst is over. Are they right? Maybe, maybe not. As I said, it’s a high risk strategy. But the evidence does not currently suggest that the strategy is failing, although it does not suggest unqualified success either.

      I say all this as a Man U fan who would like the Glazers to go, all things considered. But it’s important to understand what the situation actually is, and this article fails at that.

  5. “I say all this as a Man U fan”

    then you should know better than to use the term “ManU” that is offensive and degrading to the club. know your history!!!!

Leave a Reply

Your email address will not be published. Required fields are marked *