FROM the Manchester United merchandising team which made a fortune from logo-embossed duvet covers, coffee mugs, wall clocks, key rings, et al, comes a new moneyspinning assault on the credulous MUTV. The football club's chief executive Martin Edwards said this week that the board were in discussions with three parties over putting a Manchester United cable television on air, either by itself or as part of a general package with other Premier League teams.
While getting off to a sluggish start on the playing pitch, the lads in suits played a blinder on the balance sheet. In the half-year to the end of January last, pre-tax profits (excluding transfer fees) rose from £11 million to £15.7 million. While there was a £4 million gain on the sale of players, the purchase of new legs may soon make the club a net spender.
Bigger crowds at the enlarged Old Trafford Stadium and higher TV revenue pushed turnover up a whopping 68 per cent to £50 million.
Edwards says that the run to the semi-finals of the European Champions' league had earned around £7 million. Paradoxically, should the team reach the final, losing would be more profitable that winning due to players' bonus payments.
The club keeps the faith with its investors, interim dividend rising from 1.6p to 1.9p a share. Analysts anticipate full year profits of around £27 million.
