English Premiership
Utd downplay financial woes
2009-01-14 12:57
Email | Print
Macau - Manchester United chief executive David Gill on Wednesday said the club remained in a robust financial position despite worries over its huge debt and sponsorship deal with troubled insurance giant AIG.
Gill insisted the ongoing economic crisis had so far had little impact on the club's finances, and that its revenue streams remained consistent in the face of the global slowdown.
"We are not complacent and we understand the issues in the world are such that we cannot expect to be immune from them," Gill said during a trip to Macau to unveil details of this year's Asian tour.
"At the same time, we have a robust business plan," he said, adding "football is only going to get bigger."
Gill said United was paying around 43 million pounds a year to service its huge debt of 660 million pounds, which was created when US owner Malcolm Glazer moved to buy up the club in a controversial swoop in 2005.
Some analysts have worried that United could struggle to service its heavy debts as global credit markets contracted, but Gill said the annual payments were expected to remain consistent for the next few years as the financing was organised relatively recently, in 2006.
He added sales of season tickets and executive boxes had also stood up to the downturn, and that he was expecting improvements in the television income from the UEFA Champions' League which is currently being renegotiated.
Gill added there had been no moves from shirt sponsor American International Group (AIG) to pull its 56.5 million pound deal early, despite the US government having to rescue the ailing firm last year.
He conceded it was "more than likely" AIG would not renew the deal when it expires in 18 months' time, but said there were plenty of potential suitors.
"We think, given there is only one piece of real estate on the shirt, we think it is a very attractive proposition," he said.
"There are many companies around the world who would like to have that association."
Manchester United will head to Asia in July for a pre-season tour with games in China, South Korea, Malaysia and the club's first ever game in Indonesia, Gill said.
The tour, alongside a permanent Manchester United exhibition and store in the Venetian casino in Macau, showed the club's commitment to Asia, Gill said, and how important the region was for the growth of the Premier League.
Gill said there were an estimated 12 million fans in Indonesia, which had prompted the trip to Jakarta. United were last in Asia in December when they won the Club World Cup in Japan.
Gill said the thorny of issue of what happens when Alex Ferguson retires was not at the forefront of his mind, but that it was important to learn from the mistakes made by the club when legendary manager Matt Busby left.
"If you wind the clock back to when Matt retired... the team was on the wane. George (Best), Denis (Law), and Bobby (Charlton) were towards the latter part of their careers as opposed to the peak of their careers," he said, adding it was important to have young players to hand over to the next manager.
Click HERE for EPL odds on BET.CO.ZABet.co.za online Pty Ltd t/a Bet.co.za is licensed by the Western Cape Gambling and Racing Board. Winners know when to stop. National Responsible Gambling Program 0800 006 008. No under 18's allowed.