Ronaldo sale to Real keeps Man U in the black

(China Daily)
Updated: 2010-01-13 09:28

LONDON: Only Cristiano Ronaldo's world-record transfer prevented Manchester United making an annual loss of more than 30 million pounds ($48.2 million), figures released by the English Premier League champions showed on Monday.

United declared a pre-tax profit of 48.2 million pounds ($77.7 million) for the year up to June 30, 2009.

But without the departure of Portugal winger Ronaldo, sold to Spanish giants Real Madrid for 80 million pounds ($129 million), the Old Trafford club would have been reporting a loss of 31.8 million pounds.

The club's figure also showed it had paid 41.9 million pounds in interest on a huge loan of 509.5 million pounds.

Turnover was up to 278.5 million pounds from 256.2 million a year ago.

United's figures were released at the same time as the club announced plans to refinance its debts by raising 500 million pounds through a bond issue.

"Manchester United today announced it will be seeking to raise approximately 500 million pounds aggregate principal amount from an offering of senior secured notes due 2017," a United statement said on Monday.

"The notes, whose proceeds will be used to refinance existing debt secured against the club, will be issued by MU Finance plc."

The incentive for investors is that they will in turn receive an attractive rate of interest over seven years in addition to getting their initial investment back from United.

That United, whose Old Trafford ground is often filled close to its capacity of more than 76,000, should find themselves in this position will be a source of wonder to some fans of less well-supported clubs.

But many United supporters' groups were concerned by the huge amount of debt the club was saddled with as a result of the 790-million pounds takeover by their current owners, the US-based Glazer family, in 2005.

And this latest announcement did little to win over Manchester United Supporters' Trust chairman Duncan Drasdo, who said: "Most supporters have had enough ... the latest trading statement would have shown a substantial loss were it not for the sale of Ronaldo.

"The day the Glazers put the club up for sale you can expect celebrations on the streets of Manchester."

Last week, United manager Sir Alex Ferguson moved to quell fans' fears the club's debts were preventing him from signing new players with the Scot insisting the decision not to spend three-quarters of the money received for Ronaldo was his alone.

"I don't have any concerns about the financial situation," he said. "There is absolutely no issue at all. I am really confident about that.

"Concerns of the supporters are down to the fact that I haven't moved in the transfer market."

AFP