Club speaks of converting fans into customers

Market player: The extent of Manchester United's dominance of the English Premiership is matched only by its position as the most profitable football club in the world, writes Una McCaffrey.

In the year to July, pre-tax profits at Old Trafford rose by 22 per cent to £39.3 million (€56 million), while turnover climbed 18 per cent to £173 million.

The performance, which becomes the stuff of legend when placed beside the continuing struggles of competing clubs, is based on a tactical play of both the football and business fields.

Manchester United currently occupies third place in the Premier League after having won eight out of the past 11 premiership titles.

The club's revenues were boosted by almost £30 million when it reached the quarter final of the UEFA Championship League for the seventh time last year, with a US tour making a further £4 million. Domestic cup runs added £8.5 million.

Outside of the actual ball-playing, turnover in the year gone past was about 12 per cent higher than in 2002 on the back of stronger sponsorship and TV-related revenues.

Mr Neil Harding, divisional director with Brewin Dolphin Securities, joint broker to the football club, said yesterday that it was in this area where Manchester United was clearly separated from the rest of the premiership, with the "red" brand among the most powerful in the world.

This was evidenced last year by a new contract with Nike, which injected almost £25 million into the Manchester United kitty.

Over the 12 months to July, more than 2.5 million replica Manchester United shirts were sold. Crucially, more than 40 per cent of the Nike Merchandising sales were generated outside the UK.

The club speaks openly of "converting fans into customers" and now operates a database containing the names of 1.9 million followers.

For their part, the fans appear to be willing participants in the business of Manchester United, with several thousand such individuals represented by the Manchester United Supporters Trust.

This loose organisation, which holds proxies to about 2 per cent of Manchester United's shares, was philosophical about the stake-building of Mr JP McManus and Mr John Magnier yesterday.

Spokesman Mr Oliver Houston said the organisation was viewing the purchase as a defensive move from the Irish businessmen.

He expressed some concern, however, about the possibility that the billionaires would use the new position to impose their will on the day-to-day running of Manchester United.

"When somebody has that much of the club, they could have the power to make serious trouble," said Mr Houston.

Thus far, the intentions of the Irish duo in this regard remain unclear.