Man Utd boss nets 39% pay rise

The basic pay of Martin Edwards, Manchester United's chief executive, soared by 39 per cent last year, despite the football club reporting a sharp drop in profits.

The company's latest report and accounts, just posted to shareholders, shows Mr Edwards received a base salary of pounds 212,000 for the 12 months to July 1996, compared with pounds 153,000 the previous year.

It also reveals that Mr Edwards earned a pounds 67,000 performance-related bonus, even though United's operating income actually fell to pounds 14.2m from pounds 15.6m due to lower gate receipts and weaker merchandising sales caused by redevelopment of the club's North Stand, which temporarily cut capacity at its Old Trafford stadium.

All told, Mr Edwards' total pay, including benefits and pensions contributions, rose to pounds 321,000 from pounds 290,000, an increase of 11 per cent.

Mr Edwards is United's largest shareholder with a 17.2 per cent stake, entitling him to an annual dividend income of more than pounds 550,000. He has also been the single biggest beneficiary of United's soaring share price. At last night's close his stake was worth almost pounds 18m with the shares closing down 8.5p at 496.5p.

A company spokesman said Mr Edwards' bonus had nothing to do with Manchester United winning the League and FA Cup double last season. Instead, the issue was decided by the club's remuneration committee, headed by United chairman Professor Sir Roland Smith, and based on hitting an internal target for profits before transfer fees.

This figure rose slightly last year to pounds 16.7m, but was only struck after a one-off gain of pounds 2.2m arising from a 10-year publishing deal with VCI, the video group that earlier this year tried to buy Manchester United for about pounds 300m. The spokesman said that United's results came in above analysts' expectations.

Mr Edwards was criticised last month after reportedly saying he would only entertain bids for the club above pounds 400m. That led to heavy buying of United's shares, forcing the club to issue a statement saying no approaches had been received.