Despite the protests of Manchester United fans, the financial situation of the club is improving according to new figures showing an increase in revenue and profits.
The figures for the six months up to December show turnover up 19% to £144.7million from £121.7million for the equivalent period in 2008, largely due to increases in match day revenues, TV money, particularly from the Champions League, and commercial revenue.
Media revenues have increased 33% from £40.3million to £53.4million and commercial revenues up 16% from £33.5million to £38.7million.
The club’s debt dropped from £538.1million to £507.5million and in January, Manchester United successfully raised £504m through a bond issue, meaning the Premier League club will be able to pay off nearly all their outstanding debts. United will pay an annual interest bill of £45m a year on the bonds.
Manchester United’s cash balance stands at £122.1m, up from £8.6m, but I believe that this is due to a line of credit that United took out at the beginning of the year.