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Glazers Only Wanted Top 3 Finish Last Season

EXCLUSIVE: Red Football accounts reveal business targets

Written by . Published on December 22nd 2011.

Glazers Only Wanted Top 3 Finish Last Season

THIRD place in the Premier League would have been good enough for Manchester United's owners last season - according to its business plan.

The ccompany's overall profit for the year to the end of June 2011 stood at £10.1m, compared to a £26m loss the previous year.

New accounts for Red Football Ltd, the Glazer-controlled firm that owns the Red Devils, reveals the business plan for the 2010/11 season.

The targets for 'team performance' included 'minimum finish of third place' in the league - which it went on to win - reaching the last 16 of the Champions League (they were beaten finalists) and the last eight of the two main domestic cup competitions.

This suggests the Glazers were not set exclusively on bringing the title to Old Trafford in order to satisfy the needs of the business.

The plan also says that one of the four main strategies of the club is to 'treat fans like customers'. Curious phraseology.

The policy obviously worked - the club managed to grow revenues to £331.4m in 2011, compared to £286.4m the previous year. Pre-tax profits leapt from £15m to £29.7m and net debt decreased from £376m to £308m.

The ccompany's overall profit for the year to the end of June 2011 stood at £10.1m, compared to a £26m loss the previous year.

The club also managed to grow its commerical revenue by 61 per cent as it made a pre-tax profit of £110m (up from £101m in 2010), signing a raft of new sponsorship deals off the pitch.

The club did see a six per cent drop in media income however, largely due to how its MUTV subscription channel is sold internationally.

The club's failure to qualify for the next round of the Champions' League this time around is a blow though - the report attached to the accounts calls the competition 'particularly important', and it generated gate receipts of £12.8m last year, as well as another £46.9m of media money.

Over at Confidential, we wonder what Fergie would have made of being told it would be ok to finish anywhere in the top three.

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Dave GouldingDecember 22nd 2011.

Without wishing to paint the Glazers in a favourable light, may I respectfully point out that this was a BUSINESS plan... and it seems to have worked. At this rate they should pay off all their debts by 2017!

it's the city, duffusDecember 22nd 2011.

What happened to the ominous floatation in Singapore? I guess they are doomed without it.

1 Response: Reply To This...
HeadjackDecember 23rd 2011.

Why is it ominous? They are going to sell a non-controlling stake in the club for more than the current debt.

And no, they're not doomed without it. The debt is approx a third (if not less) of the club's value and it's being serviced. Most people have mortgages in a worse state.

it's the city, duffusDecember 23rd 2011.

Why ominous? Because shares in football don't work. Tottenham just delisted (rather secretly) as one of the last clubs around, matey.

Listing always exposes desperation - especially when you need to go abroad to do it...

As to the club's value - give me a break.

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