Question 12

Man Utd reveal £12.3m profit drop

Manchester United made a profit of £46m for the year ending June 2005 - a drop of £12.3m from the previous 12 months.

United chief executive David Gill, who now reports to new owner Malcolm Glazer, attributed the fall in profits to a drop in television money.

United paid £2.2m to agents, including £1.5m to buy Wayne Rooney from Everton.

Despite United going out of the Champions League in the group stages this season, Gill is confident the club will report good figures for next year's results.

"The forecast for 2006 is very good but I am not going to predict profits will be over £50m," he said.

"But going forward, the new stadium expansion means there will be nearly 8,000 extra seats from the start of next season and the end of 2007 is looking very positive."

Source: BBC News 22^nd January 2006 (adapted)

Questions What is the percentage fall in profits for Manchester Utd? What percentage of the total agents’ fees does the Rooney transfer represent? If profits are £50m what is that as a percentage increase? If average gates are 50,000 at an average seat price of £15, what is the a) weekly b) yearly, revenue for first-team games?