United scores well in first half
Wednesday 29 March 1995
Football is definitely a game of two halves. There is the half that does not make money, and there is the half that does. Manchester United falls into the second category.
Interim results from the winners of the Premier League for the past two seasons, currently in second position behind Blackburn Rovers, showed that almost £900,000 rolls into the company from each home game, with an average gate of 43,000.
Add £3m from playing in the European Champions League and proceeds from merchandising, and the total for six months to 31 January was a profit before tax and transfer fees of £11.2m against £6.8m in the corresponding period.
A repeat performance in the second half is not on the cards, however. The revenue pattern is front-end loaded with the first half reaping in advance sales from sponsorship, a loyal army of season ticket holders and the 3,000-plus throng of VIPs, who each put up an average £1,338 a year to watch the game from executive boxes.
Additionally, the club played 18 home matches in the first half and will play only 10 in the second. Overall, the first half absorbs 50 per cent of the costs but produces almost two-thirds of the income.
United's pure pre-tax profits were dented by the club's dabbling on the transfer market - most notably the record £6.25m signing from Newcastle United of Andy Cole. Net transfer costs were £3.89m, against a £775,000 credit, and left the pre-tax result down at £7.33m compared with £7.6m.
However, Martin Edwards, chief executive, said there was no need to dip into the transfer reserve fund, which stands at £4m net of tax.
City followers, as in London and not Manchester, thought the company had "done well" in the first half and marked the share price up 4p to 129p. Shareholders will pocket an interim dividend of 1.4p, up from 1.3p.
Cantona denial, page 40
- 2 Harry Potter fans can apply to the Hogwarts-inspired College of Wizardry
- 3 Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
- 4 Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
- 5 Orange Wednesdays are no more
Weather bomb in pictures: Storms cuts power for tens of thousands – and snow is on the way
Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
Russell Brand was rendered speechless on Question Time by this man
Fury at Airbus after it hints the super-jumbo may be mothballed
Nigel Farage: Me vs Russell Brand on Question Time – he's got the chest hair but where are his ideas?
Shock poll shows voters believe Ukip is to the left of the Tories
Disgruntled RBS worker writes hilarious open letter to Russell Brand after anti-capitalist publicity stunt leaves him hungry
New era of cheap oil 'will destroy green revolution'
Ukip founder Alan Sked and Nigel Farage 'begged Enoch Powell to stand as a candidate'
Ukip candidate jokes about 'shooting peasants' in racist and homophobic rant
iJobs Money & Business
£32000 - £35000 per annum + benefits: Ashdown Group: Marketing Services Manage...
£Neg. (DOE) + Excellent Benefits: Guru Careers: A Finance Account Manager with...
£40000 - £470000 per annum + bonus: Ashdown Group: Java Developer / J2EE Devel...
£45000 - £55000 per annum + Benefits: Ashdown Group: An exciting opportunity h...