United´s parent company posts £44.8 mln loss

Manchester United’s parent company have posted a 44.8-million-pound pre-tax loss for the financial year ending June 2008 as debt repayments continue to take their toll.

The loss takes Red Football Joint Venture Ltd’s overall debt to 649.4million, despite an operating profit of 80.4 million pounds over the same period.

That profit represents an improvement of five million pounds on the previous year, achieved partly thanks to United’s triumph in the Champions League final last May.

The figures were released by Companies House on Thursday and show that while United’s debt remains a concern, their day-to-day business model is strong.

Increased TV revenues and sponsorship deals with Saudi Telecom, Diageo, Budweiser and the Seoul Metropolitan Government show the Red Devils are still a powerful brand across the globe, even at a time of worldwide economic austerity.

With United’s major shirt sponsors AIG now under the control of the US Government, the club are already on the hunt for a replacement, knowing a vociferous lobby with the US Senate feels the company should back out of the final year of their contract.