LONDON - Manchester United reported a net loss of 83.6 million pounds (C$135.5 million) last season despite record revenues, with the club's debt burden providing further fuel for fans protesting against the American owners.
The Premier League giant's record losses for the year ending June 30 are a big swing from the 25.5 million-pound (C$41.3 million) profit from the previous financial year, which came after the sale of Cristiano Ronaldo to Real Madrid for a world-record 80 million pounds (C$129.6 million).
There has been no similar big-name signing to replace the Portugal winger, despite cash reserves of 163.8 million pounds (C$265.3 million) reported in the latest financial figures released Friday.
The 18-time English champions spent only around 25 million pounds (C$40.5 million) on new players in the most recent off-season, while neighbour Manchester City lavished more than 120 million pounds (C$194.4 million) of its wealthy Abu Dhabi owner's funds on strengthening the squad.
After seven matches of the season, United is already third in the standings -- five points adrift of Chelsea and a point behind City.
The latest financial results will provide more ammunition for the protest movement that fans launched in January in a bid to force out the Glazer family.
Similarly intense protests at Liverpool, also coupled with crippling debts, have forced American co-owners Tom Hicks and George Gillett Jr. to put the club up for the sale. They are now trying to block a 300-million-pound (C$485.9 million) bid by the owners of the Boston Red Sox, saying the offer undervalues the club.
United had no debts before Tampa Bay Buccaneers owner Malcolm Glazer took control in 2005.
But the new figures show interest payments chewed up 40.2 million pounds (C$65.1 million) as the club had debts of 521.7 million pounds (C$844.8 million) -- a figure that does not include 225 million pounds (C$364.3 million) of loans, which carry an interest rate of 16.25 per cent.
These are the first annual results since 504 million pounds (C$816.2 million) was raised through a seven-year bond issue to replace long-term financing and reduce debts to hedge funds.
Forbes magazine recently estimated that United is worth $1.8 billion (C$2.9 million) -- making it the most valuable soccer team in its rankings for the sixth straight year.
And in the latest accounts, the Glazer family flagged up the strength of its global commercial operations, which delivered a record revenue of 286.4 million pounds (C$463.8 million) .
Operating profit exceeded 100 million pounds (C$161.9 million) for the first time -- a figure that doesn't include depreciation and amortization.
