united rake in millions

LONDON - English giants Manchester United yesterday reported pre-tax profits of £48,2million (R563,8million) for the year to June 30 2009.

LONDON - English giants Manchester United yesterday reported pre-tax profits of £48,2million (R563,8million) for the year to June 30 2009.

The figure includes the world record £80million (then R1billion) fee they pocketed for the sale of star forward Cristiano Ronaldo to Real Madrid and also £41,9million (R490million) paid out in interest on a mammoth loan of £509,5million (R5,9billion).

Turnover was also up, from £80,4million in 2008 to £91,3million a year later. The figures were released on a morning when United officially confirmed their intention to raise £500million (R5,8billion) through bonds in order to refinance their debts.

Without the sale of Ronaldo, the English Premier League champions would have been reporting a loss of £31,8million (R371,9 million), a situation that is clearly unsustainable over the long term, hence the bonds issue.

"Manchester United today announced that it will be seeking to raise approximately £500 million aggregate principal amount from an offering of senior secured notes due 2017," the club said. The proceeds would be used to refinance existing debt secured against the club. - Sapa-AFP

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