Kieran Maguire of the PriceofFootball reviews Manchester United's latest annual accounts: Waterfall
He notes, 'The matchday income for Manchester United in 2018/19 was £111 million, impressive by Premier League standards and above that of any other club in that division (whose figures are from 2017/18 as no one else has published results yet). However, there has been hardly any growth in matchday revenue since Sir Alex Ferguson retired in 2013 and critics say that Old Trafford is falling behind rivals in terms of modern facilities and comfort.'
'Whilst the annual interest expense has fallen to just £22 million last season the total cost since 2005 has now reached £809 million, exceeding the sum originally borrowed.Overall taking into account interest and tax costs Manchester United made a profit of just under £19 million, lower than some other clubs who had the benefits of much larger player sale gains the previous season. Out of those profits £23 million was then paid from the club in the form of dividends to shareholders, United are the only club in the Premier League who make such payments to the Glazer family and hedge funds who own nearly all the shares in the club.'
Maguire concludes, 'There is no doubt that the Glazers and Ed Woodward are unpopular with a large proportion of fans. The lack of trophies in recent years is now perhaps catching up with the club as it no longer shows the incredible growth in sponsorship deal values that took place once upon a time. So perhaps Ed is wrong and playing performance does really have a meaningful impact on the commercial side of the business, and that might worry the owners and investors as it has done the fans in recent times. Whether that will result in an improvement in United’s fortunes on the pitch if the club is driven by the manager instead of the commercial department is an unknown.'
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