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Pressure on Moyes to deliver as massive debt still looms over Man Utd
by Robert St George on Sep 18, 2013 at 15:43
Manchester United earned record revenues of £363 million in the club’s first year on the New York Stock Exchange, but analysts have noted that new manager David Moyes must deliver success on the pitch to keep the firm’s debt pile under control.
The football club listed last year in part to pay down its debts, which despite an 11% decline since then still stand at £389 million – which dwarves Manchester United’s adjusted profit for the period of £17 million.
For the next fiscal year, Manchester United has predicted that revenues will be between £420 million and £430 million.
However, to meet this target the club confirmed that it would need to finish at least third in the Premier League, and reach at a minimum the quarter-finals of the Champions League and the domestic cups. Last year, under former manager Sir Alex Ferguson (pictured), Manchester United were controversially knocked out of the Champions League in the second round as Real Madrid capitalised on Nani being very harshly sent off.
‘This all means more pressure on Moyes to follow the success of his much loved predecessor,’ commented Joe Rundle, head of trading at ETX Capital. ‘Much is now dependent on success on the pitch.’
Shares in the club have climbed by 22% since last August’s floatation, outperforming the S&P 500 by 1%. The rise will have made more than £6 million in just one year for George Soros, who acquired a 1.9% stake in Manchester United when it went public.
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