Manchester United chief Ed Woodward claims the club’s strong financial position helped in contracting Alexis Sanchez a contract worth a total of £600,000-a-week.
United displaced city rivals to sign Sanchez from Arsenal last month after offering the Chile star a mouth watering deal that includes bonuses and image rights.
United also extended Jose Mourinho’s contract that increased his earnings to an estimated £15million-a-year after winning three trophies in his first season at Old Trafford.
Manchester United claim they were able to beat Manchester City to the signature of Alexis Sanchez and pay the Chilean £600,000-a-week because of their strong financial position +4
Manchester United claim they were able to beat Manchester City to the signature of Alexis Sanchez and pay the Chilean £600,000-a-week because of their strong financial position
Announcing the club’s latest financial results, Woodward said: ‘Our solid business model has allowed us to invest in the future of the club with the extension of Jose Mourinho’s contract as manager and entering into an exchange agreement with Arsenal, swapping Henrikh Mkhitaryan for Alexis Sanchez, strengthening Jose’s attacking options. We look forward to the remainder of the season with confidence.
‘On the pitch we remain second in the league and have progressed to the fifth round of the FA Cup where we face Huddersfield. We have also progressed to the knockout stage of the Champions League where we will meet Seville in the round of 16.’
Woodward revealed that signing Sanchez has led to record shirt sales for a January transfer window signing at United, and more activity on social media than Neymar’s world record move from Barcelona to Paris Saint-Germain.
He added: ‘This generated some interesting social media stats. It was the biggest United post on Instagram with two million likes and comments, the most shared United Facebook post ever, and the most retweeted United post ever – #alexis7 was the number one trending topic on Twitter worldwide.
‘To put that in context, the announcement generated 75 per cent more interaction than the announcement of the sale of the world’s most expensive player last summer when Neymar moved from Barcelona to PSG.
‘Alexis Sanchez has also set a new January signing record in terms of shirt sales, three times our previous record.’
United chief executive Ed Woodward, pictured with former manager Sir Alex Ferguson, said he is looking forward to the remainder of the season with confidence +4
United chief executive Ed Woodward, pictured with former manager Sir Alex Ferguson, said he is looking forward to the remainder of the season with confidence
United actually made an overall loss of £29m on the quarter due mainly to the US tax reforms that saw the federal income tax rate reduced from 35 per cent to 21 per cent at the end of last year.
It has affected the majority of major companies worldwide, even those like United who only pay a fraction of their taxes in the US.
It meant the club has had to revalue deferred tax assets in America, resulting in a non-cash write-off of £48m which has pushed United into a loss but will not, they insist, have any other impact.
‘It should be beneficial to the club in the long-term, however we are still working through the details and the potential impact of the more complex aspects of the reforms,’ said United’s chief financial officer Cliff Batey.
‘The reduction in tax rate has resulted in a non-cash accounting charge of £48.8m to be recorded in the quarter. This charge relates to the write-off of a portion of deferred tax assets and is similar in nature to the write-offs reported by many other companies.
‘It’s important to reiterate that it’s a non-cash accounting charge only which has no impact on our financial competitiveness or our ability to meet Financial Fair Play regulations.’
United’s overall revenue for the quarter ending December 31, 2017, was up four per cent to £163.9million.
However, total operating expenses rose 8.1 per cent to £96.1m, with a 9.4 per cent increase in total wages attributed to player bonuses for qualifying for the Champions League.
Commercial revenue was down £1.4m, or 2.1 per cent, over the previous quarter, sponsorship revenue decreased £1.3m, or 3.2 per cent, and matchday revenue was down £1.7m, or 4.4 per cent.
Manchester United chief Ed Woodward claims the club’s strong financial position helped in contracting Alexis Sanchez a contract worth a total of £600,000-a-week.
United displaced city rivals to sign Sanchez from Arsenal last month after offering the Chile star a mouth watering deal that includes bonuses and image rights.
United also extended Jose Mourinho’s contract that increased his earnings to an estimated £15million-a-year after winning three trophies in his first season at Old Trafford.
Manchester United claim they were able to beat Manchester City to the signature of Alexis Sanchez and pay the Chilean £600,000-a-week because of their strong financial position +4
Manchester United claim they were able to beat Manchester City to the signature of Alexis Sanchez and pay the Chilean £600,000-a-week because of their strong financial position
Announcing the club’s latest financial results, Woodward said: ‘Our solid business model has allowed us to invest in the future of the club with the extension of Jose Mourinho’s contract as manager and entering into an exchange agreement with Arsenal, swapping Henrikh Mkhitaryan for Alexis Sanchez, strengthening Jose’s attacking options. We look forward to the remainder of the season with confidence.
‘On the pitch we remain second in the league and have progressed to the fifth round of the FA Cup where we face Huddersfield. We have also progressed to the knockout stage of the Champions League where we will meet Seville in the round of 16.’
Woodward revealed that signing Sanchez has led to record shirt sales for a January transfer window signing at United, and more activity on social media than Neymar’s world record move from Barcelona to Paris Saint-Germain.
He added: ‘This generated some interesting social media stats. It was the biggest United post on Instagram with two million likes and comments, the most shared United Facebook post ever, and the most retweeted United post ever – #alexis7 was the number one trending topic on Twitter worldwide.
‘To put that in context, the announcement generated 75 per cent more interaction than the announcement of the sale of the world’s most expensive player last summer when Neymar moved from Barcelona to PSG.
‘Alexis Sanchez has also set a new January signing record in terms of shirt sales, three times our previous record.’
United chief executive Ed Woodward, pictured with former manager Sir Alex Ferguson, said he is looking forward to the remainder of the season with confidence +4
United chief executive Ed Woodward, pictured with former manager Sir Alex Ferguson, said he is looking forward to the remainder of the season with confidence
United actually made an overall loss of £29m on the quarter due mainly to the US tax reforms that saw the federal income tax rate reduced from 35 per cent to 21 per cent at the end of last year.
It has affected the majority of major companies worldwide, even those like United who only pay a fraction of their taxes in the US.
It meant the club has had to revalue deferred tax assets in America, resulting in a non-cash write-off of £48m which has pushed United into a loss but will not, they insist, have any other impact.
‘It should be beneficial to the club in the long-term, however we are still working through the details and the potential impact of the more complex aspects of the reforms,’ said United’s chief financial officer Cliff Batey.
‘The reduction in tax rate has resulted in a non-cash accounting charge of £48.8m to be recorded in the quarter. This charge relates to the write-off of a portion of deferred tax assets and is similar in nature to the write-offs reported by many other companies.
‘It’s important to reiterate that it’s a non-cash accounting charge only which has no impact on our financial competitiveness or our ability to meet Financial Fair Play regulations.’
United’s overall revenue for the quarter ending December 31, 2017, was up four per cent to £163.9million.
However, total operating expenses rose 8.1 per cent to £96.1m, with a 9.4 per cent increase in total wages attributed to player bonuses for qualifying for the Champions League.
Commercial revenue was down £1.4m, or 2.1 per cent, over the previous quarter, sponsorship revenue decreased £1.3m, or 3.2 per cent, and matchday revenue was down £1.7m, or 4.4 per cent.
