Manchester United announce soaring profits

Chief executive Peter Kenyon has defended Manchester United's £9

Chief executive Peter Kenyon has defended Manchester United's £9.5million rise in players' wages - insisting the Premiership champions are more than capable of funding the increase.

The increase, revealed today in Manchester United plc's interim results, amounts to an extra £182,000 a week after the world’s richest club announced an increase in profits of more than £13million.

Kenyon told BBCRadio 5 Live: "That was all part of a planned step change. We invested heavily in the squad in the close season and we have also re-negotiated a number of major contracts.

"It's a major part of out planned expenditure over the next several years. We are confident that our wages are in line with our financial parameters, about 50% of our turnover."

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The Old Trafford club made £30.9million in the six months ending January 31st - before tax - to almost double their profit margin.

Television income increased by a massive 60% to £24.2million as United's turnover rose to £81.8million.

United made a profit on player trading of £16.3million, mainly due to Jaap Stam's £16.5million move to Lazio and Andy Cole's £8million switch to Blackburn.

Gate receipts also soared with £31.6million coming through the turnstiles. Kenyon is not unduly concerned by the Football League's current trouble with their ITVDigital television contract, which could see lower division income fall.

"We budget for being in the quarter-finals of the Champions League and the top four in the Premier League," said Kenyon.

PA