Man Utd Parent Company Announce USD176m Losses

English Premier League leaders, soccer club Manchester United’s parent company have announced a loss of US$176.8m in the year ending June 30, 2010, according to accounts filed at Companies House.

The parent company of United’s owners the Glazer family, Red Football Joint Venture outlined a turnaround in fortune from the previous financial year when the company had posted a $34m profit – figures largely achieved by the $130m sale of Cristiano Ronaldo to Real Madrid.

The loss includes one-off costs from establishing a $854m bond scheme to replace outstanding debts of $826.8m. Losses in 2010 also included $49m in interest on Red Football’s $357m payment in kind (PIK) loans, which have now been repaid.

United’s chief executive David Gill has rejected fears over the Barclays Premier League club’s financial health following the release of its annual results in October.

Gill stated at the time: “We have £165 million in the bank. United fans should not be concerned, we have a long-term financing structure in place, excellent revenues that are growing, we are controlling our costs – total wages are 46% of turnover – and we can afford the interest on our long-term finance.”