Man Utd make 84 mln stg loss on debt charges

Manchester United made a full-year loss of 83.6 million pounds ($133 million) due to managing the cost of debt, they said on Friday, giving more ammunition to the many critics of the Premier League club`s American owners.

Last Updated: Oct 08, 2010, 19:09 PM IST

London:Manchester United made a full-year loss of 83.6 million pounds ($133 million) due to managing the cost of debt, they said on Friday, giving more ammunition to the many critics of the Premier League club`s American owners.

The club, third in the Premier League, posted a record operating profit of 101 million pounds due to increased broadcasting and commercial income but made a loss when interest charges and the cost of restructuring its debt were added on.
Net finance charges for the year to end-June were hit by exceptional items totalling 64.7 million pounds, mostly related to the refinancing of bank loans into a high-yield bond.

The news will add to a debate in Britain about club ownership after rivals Liverpool agreed a sale to new owners in a bid to rid themselves of millions of pounds worth of debt which has limited their ability to buy new players.

Many fans of Manchester United also say their club has been limited in the transfer market, at a time when fierce local rivals Manchester City have spent heavily on new players under wealthy new owners.
Gross debt attached to the club, owned by the Glazer family, rose slightly to 522 million pounds.

Bureau Report