Man Utd parent company makes loss

Debt repayments at Manchester United have caused parent firm Red Football Joint Venture to make a £44.8m ($65.6m) pre-tax loss for the year to June 2008.

It covers the 2007/08 season, when United won the Premier League and Champions League, and takes the Red Football's debt from £604m to £649.4m.

Red Football Joint Venture was set up when the Glazer family borrowed heavily to buy the club for £790m in 2005.

Group turnover for the year was £256.2m, an English club record.

It was up from £210m the year before, and operating profit was up £5m on the previous year.

'Global brand'

The football club enjoyed a successful 2007/08 - with television revenues made from the improved Premier league deal and Champions League final run, sell-out games at the 75,000 capacity at Old Trafford, and all its other commercial revenues. "The turnover is spectacular, which is what you would expect from a season when they won the Premier League and Champions League," said Harry Philp, financial analyst at Hermes Sports Partners.

Match day revenues were up from 92.6m to £101.5m, while media income was up by close to 50%, from £61.5m to £90.7m. Meanwhile, the club's commercial operations generated £64m.

"The company continues to explore new commercial opportunities within the United Kingdom and overseas to further leverage the Manchester United brand," it said in a statement.

The club said it had four elements to increase its financial growth; maintaining playing success, treating fans as customers, leveraging the global brand, and developing club media rights.

Manchester United also made a profit of £21.8m on player transfers.