Blue Mooner
Well-Known Member
- Joined
- 25 Jun 2005
- Messages
- 3,139
chesterguy said:The point is United have made less than £200m profit in the years 2011, 2012 and 2013 but in the year 2013 they made £145m
Clearly their turnover will increase due to increased sponsorship deals but other revenue streams such as CL will be turned off
So clearly they have this amount of money to spend BUT any other splurges of this magnitude in the future will be on borrowed money as there is only so much in the well. Also they are still in significant debt and those costs still have to be met and how long will their owners stick with it if they cant withdraw funds from their cash cow. The running costs will have significantly increased as I am sure Falcao earns more than Welbeck and Di Maria more than Cleverley..:)
Should they fail to make CL next year I am sure I have read that the new shirt deal is halved in value and would mean a further rise in spending plus the inherent additional running costs as players have to be attracted without the CL carrot this really could be a pivotal moment in United history as I am sure the Glazer's did not sign up to United being a cash drain!!!
They certainly couldn't sustain their current level of spending year after year. You are quite right to point out that the rags made only a 986,000 profit in 2011, 28m profit in 2012 & 146m profit in 2013, however, both of those profits in 2012 & 2013 were purely as a result of 'tax credits' ie they made a provision for tax payments in earlier accounts that they then suggest no longer needed to be paid therefore went back into their accounts as revenue. That in my view artificially inflated their profits, surprise, surprise when the the monitoring period for FFP kicked in. They won't be able to use this, what I believe, to be an accounting trick again. Bear in mind that these profits were without the mass be spending being accounted for. Now I appreciate their annual income will go up as a result of the new commercial sponsorships and tv deal, however, this year at least that will be offset to a large degree by the lack of champions league so there is no way I can see them being able to consume that amount of player transfer fees year after year.
I'm no accountant however,that is my laymans interpretation, but if someone with the appropriate qualifications can provide a better overview I would be interested to hear it.
What I am confident of is that irrespective their current profits do not sustain the spending we have seen this summer.
With the knowledge that the rags still need strengthening in a number of areas and that we now have a surplus to play with, they ain't gonna be overtaking us anytime soon.