Manchester United Financial thread

[VanGaalEra]

Ed's been on the blower to everyone today swinging around how big a nob we've got. Anyway, some of the highlights:

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Watch this space

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[SirAF]

"Watch this space" He loves that phrase

 

[VanGaalEra]

"Watch this space" He loves that phrase

 

[Nick.]

I don't know much abput how this works but I would reporting losses is a strictly bad thing right? Or am I missing sonething?

 

[SirAF]

I don't know much abput how this works but I would reporting losses is a strictly bad thing right? Or am I missing sonething?

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[deafepl]

Tax accounting write off of £48.8 million what? Debt?

 

[M Bison]

Tax accounting write off of £48.8 million what? Debt?

There was something similar reported about the tax reforms negatively impacting FB too which i couldnt find the detail on too.

 

[Rozay]

The stuff about media interactions, retweets and thenrest suggests to me that there may indeed be some attention given to prolonging media interest/build-up in a deal and creating hype train.

 

[SirAF]

Tax accounting write off of £48.8 million what? Debt?

United's explanation:

The US federal corporate tax rate has reduced from 35% to 21% following the substantive enactment of the US tax reform on 22 December 2017. This necessitated a re-measurment of the existing US deferred tax position in the period to 31 december December 2017. As a result the loss for the three and six months ended 31 December 2017 includes a non-cash tax accounting write off of 48.8 million

 

[Pexbo]

Tax accounting write off of £48.8 million what? Debt?

I assume that's what it means. They were managing the debt levels for a beneficial tax rate, I assume that they've paid off some of that debt now to balance the books to the new tax rate.

 

[jojojo]

Tax accounting write off of £48.8 million what? Debt?

That terminology is usually something to do with depreciation/amortisation. Maybe something to do with how transfer fees are shown across a contract?

 

[villain]

The stuff about media interactions, retweets and thenrest suggests to me that there may indeed be some attention given to prolonging media interest/build-up in a deal and creating hype train.

It'll be used to help negotiate contracts for players, and could help us set ourselves aside from the competition - particularly for elite players.

Think image rights; not only will we pay a competitive wage but a players' individual brand will improve by associating with us, therefore they have more control of their sponsorship, branding, marketing etc.
We can use that to negotiate a lower salary/bonus but more engagement with our social media, therefore more exposure, which means more money that goes directly in their pockets.

Same thing can be applied to new sponsors, particularly the larger ones, or upcoming wonderkids for example who are looking to become the next big thing.

Social media interactions = $$, it's very good that we are at the top.

 

[prateik]

I cant picture Woody talking about Jesse's instagram takeover. What a weird thing to be talking about.

 

[SirAF]

I cant picture Woody talking about Jesse's instagram takeover. What a weird thing to be talking about.

40m hits.

 

[Hojoon]

I cant picture Woody talking about Jesse's instagram takeover. What a weird thing to be talking about.

More clicks means more visibility and more sponsors are willing to pay.

 

[vangagal]

If only Woodward was given more prominent role back at 06 instead of Gill right at the moment we rose to the top. He will salivated the imagine of $$ he will more generated with the amount of succes we had on the field from that time. Still it was a succes commercial revenue at that time thou

 

[SirAF]

If only Woodward was given more prominent role back at 06 instead of Gill right at the moment we rose to the top. He will salivated the imagine of $$ he will more generated with the amount of succes we had on the field from that time. Still it was a succes commercial revenue at that time thou

Imagine how a CL win would be spun today

Only a matter of time!

 

[Catt]

I want to be Ed's friend

 

[coolredwine]

Imagine how a CL win would be spun today

Only a matter of time!

Exactly. These are the results when we have been at our bottom. Imagine the days when we win PL/CL or both.

 

[United_We_Stand]

For fiscal 2018, Manchester United continues to expect:

• Revenue to be £575m to £585m.
• Adjusted EBITDA to be £175m to £185m.

Key Financials (unaudited)

£ million (except (loss)/earnings per share)

Three months ended Six months ended
31 December 31 December

2017 2016 Change 2017 2016 Change
Commercial revenue 65.4 66.8 (2.1%) 145.9 141.1 3.4%
Broadcasting revenue 61.6 52.5 17.3% 99.7 81.6 22.2%
Matchday revenue 36.9 38.6 (4.4%) 59.3 55.4 7.0%
Total revenue 163.9 157.9 3.8% 304.9 278.1 9.6%
Adjusted EBITDA1 67.8 69.0 (1.7%) 104.4 100.2 4.2%
Operating profit 28.7 37.6 (23.7%) 43.9 43.8 0.2%

(Loss)/profit for the period (i.e. net (loss)/income) 2 (29.0) 17.5 - (21.1) 18.7 -
Basic (loss)/earnings per share (pence) (17.71) 10.69 - (12.87) 11.40 -
Adjusted profit for the period (i.e. adjusted net income)1 15.1 17.4 (13.2%) 21.3 18.2 17.0%
Adjusted basic earnings per share (pence)1 9.23 10.63 (13.2%) 12.99 11.07 17.3%

Net debt1/3 328.6 409.3 (19.7%) 328.6 409.3 (19.7%)

 

[vangagal]

Imagine how a CL win would be spun today

Only a matter of time!

That would take over all media coverage all over the summer time i imagine.
Next i hope he renegotiate our sponsorship deals. 75mil a year seems a low amount now . And our adidas deal like what? 90 or 100mil a year? One can hope Ed will double or triple that. With Adidas walk off from Milan and our reemergence value in South America with Sanchez i can imagine the possibility.

 

[D4X73r]

If only Woodward was given more prominent role back at 06 instead of Gill right at the moment we rose to the top. He will salivated the imagine of $$ he will more generated with the amount of succes we had on the field from that time. Still it was a succes commercial revenue at that time thou

Woodward would have brought us to a position (financially), where other clubs need the backing of an oil state just to compete for a squad-player.
Neymar and Messi would have moved to our club in the same summer, Veratti and Griezmann too would be ours. We would be a money-driven powerhouse, who is cherry picking players from clubs like Real, Barca and Bayern by now

 

[vk20legend]

Read on Telegraph that our website is also the most visited sports website in the world.

If only they could make it better!!

 

[vangagal]

Read on Telegraph that our website is also the most visited sports website in the world.

If only they could make it better!!

They cant, infact, that website is still the same website i visited back in 2003 in literally everything. Nothing change on our official website for over 10 years.

 

[deafepl]

That would take over all media coverage all over the summer time i imagine.
Next i hope he renegotiate our sponsorship deals. 75mil a year seems a low amount now . And our adidas deal like what? 90 or 100mil a year? One can hope Ed will double or triple that. With Adidas walk off from Milan and our reemergence value in South America with Sanchez i can imagine the possibility.

I can Imagine Adidas and sponsorships willing to pay much if we show that we sign big player names like Griezmann, Bale, etc. More popularity more they make money from that shirts sales and marketing.

 

[Raoul]

The stuff about media interactions, retweets and thenrest suggests to me that there may indeed be some attention given to prolonging media interest/build-up in a deal and creating hype train.

Agreed.

 

[KM]

Can anyone explain to me why a tax cut rate has resulted in us writing off an amount? Theoretically, less tax should mean more profit for us.

 

[VeevaVee]

This stuff is too businessy for me. There's not much need to be sharing this. Even though some of it is fairly interesting to see, I'd rather just enjoy the football.

 

[SirAF]

This stuff is too businessy for me. There's not much need to be sharing this. I'd rather just enjoy the football.

It is not mandatory to enter the thread

 

[VeevaVee]

It is not mandatory to enter the thread

I meant Woodward sharing it to journalists. Is it normal that we'd call them and update on such things?

 

[SirAF]

I meant Woodward sharing it to journalists.

He's not sharing it to journalists, he was doing a conference call with investors, he does one each financial quarter.
The journalists will obviously report it since there are a lot of fans who are interested and Man United will always generate clicks.

The news is not even available on the official website, unless you specifically go to the investor relations section.

 

[OnlyTwoDaSilvas]

Serious wedge.

Imagine if we were actually good at this playing football thing. Woody would be making it rain every home game.

 

[Fully Fledged]

Rising wage bill hits Manchester United profits

http://www.bbc.co.uk/news/business-42992318

That's what they took out of this information? Talk about having an agenda.

I can't be bothered reading past the headline when it's that biased.

 

[Pexbo]

I meant Woodward sharing it to journalists. Is it normal that we'd call them and update on such things?

We're a PLC, it's mandatory. It's good that he does it in a positive way selling the club brand on our financial success too as it breeds more interest from potential partners which means more money for players like Alexis.

 

[RedRom]

Read on Telegraph that our website is also the most visited sports website in the world.

If only they could make it better!!

I would have thought that the BBC sport website would have more visitors then our own one, or would that just come under BBC website in general??

 

[SirAF]

http://www.bbc.co.uk/news/business-42992318

That's what they took out of this information? Talk about having an agenda.

I can't be bothered reading past the headline when it's that biased.

 

[backofthenet]

Can anyone explain to me why a tax cut rate has resulted in us writing off an amount? Theoretically, less tax should mean more profit for us.

As far as I can tell, we'd built up an accrual in our balance sheet for tax that was due to be re-paid to us. Deferred tax to be precise. We would have been able to use this against tax that we were due to pay. Where the tax rate has reduced, the value of that deferred tax has also reduced, hence the write off

 

[Pexbo]

http://www.bbc.co.uk/news/business-42992318

That's what they took out of this information? Talk about having an agenda.

I can't be bothered reading past the headline when it's that biased.

Absolute shite article as usual from the BBC. They don't even bother to mention the 21% for the new tax regulations. It's a fecking tabloid.

 

[meamth]

From the flowers of Manchester to this, we are the biggest club in the world. Keep up the great work Eddie!

 

[kps88]

Lingard's agent is going to ask for a social media bonus.