Manchester United’s debt dropped by 18 per cent as the Premier League leaders floated on the New York Stock Exchange and sponsorship revenue rose, according to the club’s latest financial results.
United’s debt, a source of fan opposition toward the owners since the Glazer family took over on 2005, dropped to STG359.7 million ($A551.22 million) by September 30 from STG436.9 million on June 30.
With the proceeds of its flotation, United paid off STG62.6 million of high-interest bonds.
The 134-year-old club’s New York listing left the Glazer family still with the biggest stake in United with almost total voting control. United shares were trading at $US12.98 ($A12.50) on Wednesday after opening at a discounted price of $14 in August.
The first quarter results released on Wednesday also showed that United recorded a profit of STG20.5 million compared with a loss of STG5.0 million a year earlier.
Commercial revenue is on course to reach at least STG350 million in the financial year after it grew by 24 per cent to STG43 million in the first quarter.
Ten new sponsorship deals were struck in three months, including with General Motors. Chevrolet will appear on United’s shirts for seven years from the 2014-15 season under a $559 million agreement.
“Manchester United had a record first quarter driven by our commercial operation, which continues to experience extremely strong global revenue growth in new media and mobile, retail merchandising and sponsorship,” United vice chairman Ed Woodward said in a statement. “The team has also made a strong start to the 12-13 season.”
After failing to win trophy last season, United leads the Premier League and its Champions League group, in part due to strengthening the squad.
Between July and September, United spent STG29.5 million on players, including midfielders Shinji Kagawa and Nick Powell, and the first of two payments to Arsenal for striker Robin van Persie.
Match day revenue did rise by STG2.0 million to STG19.6 million in part due to payments for staging football matches at Old Trafford during the London Olympics.
