Manchester United have reported pre-tax profits of £48.2million for the year to June 30th 2009, with a total turnover of £278.5 million for the year, up from £256.2 million the year before.
The sale of Cristiano Ronaldo to Real Madrid for £80million in the summer was included in the profits as was the £41.9million paid out in interest on the huge loan of £509.5million used to help fund the Glazers’ takeover of the club in 2005.
The club also announced that turnover was up from £80.4million in 2008 to £91.3million a year later.
During the year Old Trafford staged 34 major events, including 19 Premier League home games, 6 Champions League, 5 domestic cup, 1 friendly and the Ole Gunnar Solskjaer testimonial, the Super League Grand Final and an international rugby union fixture between Argentina and England.
In order to deal with the crippling debt at Old Trafford the champions have announced plans for a bond scheme to be introduced in a bid to raise £500million to replace some of the existing debt.
This would enable institutions or private investors to invest in the club and would offer the club more generous interests rates compared to the 14 per cent they are currently paying.
Without the world record sale of Ronaldo, we would have been reporting a loss of £31.8million, a situation that clearly is unsustainable over the long term, hence the bonds issue.
Take a look at United Rant‘s explanation of the debt.