United cash balance drops £100m

 

Manchester United's cash reserves fell by £100m in six months, in part to finance an investment in the squad attempting to win the fight for domestic supremacy with Manchester City.

After spending which included stadium improvements and a bond repurchase programme, the club's bank balance dropped from £150.6m to £50.9m to 31 December of last year, the club's quarterly accounts revealed yesterday.

Despite net spending of £48m on new players, including the goalkeeper David de Gea, defender Phil Jones and winger Ashley Young, United have fallen out of three cup competitions, including the Champions League, and trail City in the Premier League.

United spent £5.3m in the three months to 31 December buying back bonds, issued two years ago, to raise £504m to replace long-term financing and reduce debts to hedge funds.

United have now spent £92.8m repurchasing that debt – more than the £80m received from Real Madrid in 2009 for the sale of Cristiano Ronaldo. The club's debt, resulting from the 2005 takeover by the American Glazer family, stood at £439m at the end of 2011 and incurred almost £24.5m in interest payments in six months. Although the debt was down from £508m at the end of 2010, it rose again in the final three months of 2011 by £6m.

However, United's money-making abilities appear undiminished, with £175m generated in six months to the end of December – up more than 10 per cent on the same period a year earlier thanks largely to rises in TV income and a new training kit sponsorship deal with DHL.

"Revenues continue to grow strongly, although costs are increasing just as quickly, so pretty much negating that growth," the Manchester United Supporters' Trust said in a statement. "However the key figures of interest to supporters show the Glazers have now spent every penny of the money received from the sale of Ronaldo, and more. That's now £92.8m spent on buying back their own bond debt that they loaded on to our club."

Meanwhile, the United defender Rio Ferdinand wants to win the Europa League – if only to shut a few kids up in the school playground. Now a father to three children, Lorenz, Tate and Tia, Ferdinand has discovered that his status as a United player does not spare him from the cutting comments that are so much a part of school life.

"You have to understand, we've still got lives to lead outside of football," he said. "When you're walking up the path to school, you don't want little kids laughing at you or making fun of you because you've been beaten.

"That's what happens if you lose games or get knocked out of competitions. Young kids can be unforgiving. There's nothing in their minds that goes: 'He plays football, leave him alone'. If anything, they're even worse for it.

"And there's still a little kid inside me who has pride and an ego and wants to make sure I can walk up that path and nobody can say anything to me because we've won."

Have you tried new the Independent Digital Edition apps?
Arts and Entertainment
tvGame of Thrones season 5 ep 4, review - WARNING: contains major spoiliers!
News
Tottenham legend Jimmy Greaves has defended fans use of the word 'Yid'
people
News
i100
Arts and Entertainment
Kanye West, performing in New York last week, has been the subject of controversy as rock's traditional headline slot at Glastonbury is lost once again
music
Arts and Entertainment
The Ridiculous Six has been produced by Adam Sandler, who also stars in it
filmNew controversy after nine Native American actors walked off set
Caption competition
Caption competition
  • Get to the point
Latest stories from i100
Have you tried new the Independent Digital Edition apps?

Bleacher Report

Daily Quiz
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

Day In a Page

Fishing for votes with Nigel Farage: The Ukip leader shows how he can work an audience as he casts his line to the disaffected of Grimsby

Fishing is on Nigel Farage's mind

Ukip leader casts a line to the disaffected
Who is bombing whom in the Middle East? It's amazing they don't all hit each other

Who is bombing whom in the Middle East?

Robert Fisk untangles the countries and factions
China's influence on fashion: At the top of the game both creatively and commercially

China's influence on fashion

At the top of the game both creatively and commercially
Lord O’Donnell: Former cabinet secretary on the election and life away from the levers of power

The man known as GOD has a reputation for getting the job done

Lord O'Donnell's three principles of rule
Rainbow shades: It's all bright on the night

Rainbow shades

It's all bright on the night
'It was first time I had ever tasted chocolate. I kept a piece, and when Amsterdam was liberated, I gave it to the first Allied soldier I saw'

Bread from heaven

Dutch survivors thank RAF for World War II drop that saved millions
Britain will be 'run for the wealthy and powerful' if Tories retain power - Labour

How 'the Axe' helped Labour

UK will be 'run for the wealthy and powerful' if Tories retain power
Rare and exclusive video shows the horrific price paid by activists for challenging the rule of jihadist extremists in Syria

The price to be paid for challenging the rule of extremists

A revolution now 'consuming its own children'
Welcome to the world of Megagames

Welcome to the world of Megagames

300 players take part in Watch the Skies! board game in London
'Nymphomaniac' actress reveals what it was really like to star in one of the most explicit films ever

Charlotte Gainsbourg on 'Nymphomaniac'

Starring in one of the most explicit films ever
Robert Fisk in Abu Dhabi: The Emirates' out-of-sight migrant workers helping to build the dream projects of its rulers

Robert Fisk in Abu Dhabi

The Emirates' out-of-sight migrant workers helping to build the dream projects of its rulers
Vince Cable interview: Charging fees for employment tribunals was 'a very bad move'

Vince Cable exclusive interview

Charging fees for employment tribunals was 'a very bad move'
Iwan Rheon interview: Game of Thrones star returns to his Welsh roots to record debut album

Iwan Rheon is returning to his Welsh roots

Rheon is best known for his role as the Bastard of Bolton. It's gruelling playing a sadistic torturer, he tells Craig McLean, but it hasn't stopped him recording an album of Welsh psychedelia
Russell Brand's interview with Ed Miliband has got everyone talking about The Trews

Everyone is talking about The Trews

Russell Brand's 'true news' videos attract millions of viewers. But today's 'Milibrand' interview introduced his resolutely amateurish style to a whole new crowd
Morne Hardenberg interview: Cameraman for BBC's upcoming show Shark on filming the ocean's most dangerous predator

It's time for my close-up

Meet the man who films great whites for a living