atans1

MU’s net profit

In Footie on 06/09/2011 at 8:13 am

I was searching high and low for this figure, given all the publicity on all other types of other numbers, EBITA, revenues, operating profit etc which ran into hundreds of millions. Example http://www.channelnewsasia.com/cna/cgi-bin/search/search_7days.pl?status=&search=Manchester%20United&id=1150542

It is only sterling 9.8m (S$19.1m).

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  1. This IPOs for MU are meant for big time players. Buying into MU’s shares is more or less LIKE going to the casinos.
    Authorities should advice of the pros and cons of indulging into the MU’s shares. Hope I am not causing offence, to say that, if it is sure win, MU would not have to be in debt and will be saving all the profits for themselves. I am of the opinion that those intending indulging into this counter with their live savings to CONDIDER VERY CAREFULLY.

  2. Many analysts have already reported to the press that MU’s net profit over the last 5 years was average GBP10M per year. Most of the hundreds of millions in revenues went into the salaries, bonuses and perks of the players, owners and administrators. A typical average MU player’s salary is already a few times the net profit of the entire freaking club. Buyers of MU shares are basically funding their ridiculous salaries and bonuses, and their indulgent lifestyles. Sex orgies and playboy mansions anyone?

  3. As ManU fan, I feel obliged to point out

    1) The club is saddled with debt because the Glazers borrowed heavily to buy the club. Prior to the acquisition, as the listed ManU plc was profitable and had little debt.
    But now as a privately held entity, the Glazers are free to use the assets of ManU as collateral for their debt.

    2) As a privately held entity, the Glazers can decide to pay themselves any salary or dividend they like, so the net profit is not that meaningful for now.

    3) Take a look at the Old Trafford stadium. It is one of the largest football stadium in England and it is fully packed when ManU plays a home game. We are talking about 80k seats, thereabouts. And you cant just buy a ticket and walk in. To be guaranteed a seat, you need to buy a season ticket, and there is a waiting list for that. ManU can keep raising prices till kingdom come, and the waiting list will still be long. Talk about an investment moat. And we havent even started talking about advertising, tv rights, shirt sponsors, merchandising, player image rights, competition prize money…

    4) I have been a fan long enough, and sufficiently cynical enough to realise this: the Old Trafford stadium is called “Theatre of Dreams” NOT because the best football is played there. It is so called because the best football ENTERTAINMENT is performed there. The players are pop stars first, talented players second. ManU will always be having a conveyor belt of football stars who are not just talented, but can hog the limelight. Like David Beckham or Ronaldo, who can rake millions in image rights and then sell them for a massive profit. Even at a ripe old age of 38, Ryan Giggs can hog the limelight all summer during the off season as a sex maniac. ManU is the most popular club in South Korea, because of just 1 player. You have to credit their publicity engine. This is Disney-class entertainment. So … are the players overpaid? Sure. But who cares, as long as they pay for themselves in terms of publicity, and with which image rights money will roll in.

    That said, football entertainment is irrational, and they will certainly cash in on it by pricing the shares irrationally… so this is not a recommendation to buy into this IPO. In fact, against my heart, I think I wont be buying.

    • OK understand you. You were referring to profits when MU was listed. Long time ago Brudder.

      Anyway be grateful club keeps winning trophies. Juz look at Reds and Leeds to see what can happen when highly geared club starts losing.

  4. Excuse me! Which British team won the European Cup FIVE times?! Come back when you win another two, that it, if you can get past Barcelona!

    • History moves on. Go ask Everton, Leeds, Aston Villa, City, Arsenal, Spurs, Blackburn, QPR, Derby, Huddersfield. Once great clubs.

      Live in the present. Where got Europe? Where got EPL title?

      You sound like Pappy on past achievements. ))))

  5. ‘the market can stay irrational longer than you can stay solvent’ and vice-versa

    Not too bad for a punt. But to invest in MU as a business and value it like one? Very difficult.

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