Man Utd's accounts show losses of £106m
Tue 22nd Mar 2011 | Money & Finance
Manchester United's parent company Red Football Joint Venture, have announced losses of £108.9million last year in their latest accounts.
The company owned by the Glazer family includes one-off costs from setting up the £526million bond scheme last year to replace their bank loans, according to accounts filed at Companies House.
The loss is and increase of approximately £20 million on the accounts released in October 2010 with the club’s total debt now standing at £590.4m, up from the 2009 figure of £566.1m.
The accounts cited the repayment of a bank loan totalling £526m giving "rise to an exceptional loss on interest rate swaps of £40.7m" and an unrealised currency exchange loss of £19.3m as the main factors for the loss.
It’s understood that the lack of income from selling players also contributed to the loss for the year ending June 30, 2010 - the previous year the company had recorded £21million profit thanks largely to the £80million sale of Cristiano Ronaldo.
Last year's losses included £30.2million interest on their £220million payment in kind (PIK) loans which have since been paid off.
United's club accounts were published in October and revealed losses of £83.6million - the PIK interest payment is not included in the club accounts - but club chief executive David Gill said then there was £165million in the club's bank account and that they were in a healthy position.
Gill said in October: "We have money in the bank so there is zero pressure on that, no pressure at all to sell any star player.
"The philosophy is to retain and attract the best players. We have £165million in the bank but in some ways we would prefer to have £80million in the bank and Ronaldo on the pitch."
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