Manchester United today was able to report a £48.2m pre-tax profit thanks only to the £80m transfer of Portuguese superstar C. Ronaldo. Otherwise it would have been another year in the red to the tune of £31.8m. Much of the loss is due to a hefty £41.9m interest bill on the £509.5m loans the club has outstanding. This debt figure does not include the £175m in PIK loans the club also holds. The Glazers are reported to be interested in a bond sale later this year to refinance a portion of the club’s debts. Read more here at F365.
It should be extremely concerning to the world of football when it’s most popular club (arguably) can not turn a profit without a one-time, extraordinary event like the sale of Ronaldo. Man United are not the only club in financial trouble, red ink is showing up all over the Premier League in clubs like Hull and most spectacularly at Portsmouth.