Player market hits Man Utd profit
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LONDON, England (CNN) -- Manchester United, the world's richest football club, said on Tuesday profit fell more than 40 percent in the first six months of its financial year as the player transfer market practically ground to a halt.
Net income dropped to £ 14 million ($22 million) in the six months to January 31 from £23.4 million in the same period a year ago. Sales rose 13 percent to £93.47 million.
Profit fell because in the previous year the club had made about £16 million on the sale of star players Jaap Stam and Andy Cole.
But the Old Trafford club remains the richest in the world. Its sales continue to rise, helped by a £300 million, 13-year partnership with American sportswear manufacturer Nike.
Underlying operating profits before the cost of buying players rose 32 percent thanks to the Nike deal.
United are second in the English Premiership and through to the quarterfinals of the lucrative European Champions League for a seventh consecutive season.
Meanwhile, its rivals across Europe have been hit badly by the collapse of lucrative television deals and massive wage bills. In England, Leeds United Monday revealed debts of £78.9 million
Man Utd, whose assets include like England captain David Beckham, club captain Roy Keane and Dutch striker Ruud van Nistelrooy, said its wage bill rose to £39.7 million in the half-year, or 43 percent of sales. It warned that salaries could rise to about 50 percent for the full year.
"Looking ahead, we have a clear strategy focusing on the development of media rights, the conversion of more fans to customers and the leveraging of our global brand. This will ensure that Manchester United is well placed both on and off the field,'' said Chief Executive Peter Kenyon.
