March 22 – Manchester United’s owners made a loss of £108.9 million ($178.4 million) last year, their accounts revealed when they were released today.
The loss by Red Football Joint Venture, the parent company set up by the Glazer family to run United, includes some one-off costs from setting up the £526 million ($861 million) bond scheme last year to replace their bank loans.
A lack of income from selling players also contributed to the loss for the year ending in June.
The previous year the company had recorded £21 million ($34 million) profit largely because of the £80 million ($131 million) sale of Cristiano Ronaldo to Real Madrid.
Last year’s losses included £30.2 million ($49.4 million) interest on the £220 million ($360 million) payment in kind (PIK) loans, which have since been paid off.
United’s club accounts were published last October and revealed losses of £83.6 million ($136.8 million) – the PIK interest payment is not included in the club accounts – but club chief executive David Gill said then there was £165 million ($270 million) in the club’s bank account and that they were in a healthy position.
In the annual report for the year ending last June 30, director Joel Glazer says the club has “sufficient cash reserves … for investment in the playing squad.”
The highest loss recorded by a Premier League club was Chelsea’s £132 million ($216 million) in 2005.
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