Reds in the Red

Manchester United has increased full-year sales by 22 per cent to £256.2 million, a record for a British football club. That means profits, before interest and taxation, at Red Football Limited, United's immediate parent, rose by 29 per cent to £24.1 million.

The figures cover the 12 months to the end of June last year, taking in the whole of the 2007-08 season, during which United won the Uefa Champions League and, for the tenth time, the Premier League title.

However, once interest payments of £45.5 million were applied, Red Football Limited made a pre-tax loss of £21.4 million — down from a loss of £24.3 million in the previous year.

Meanwhile, Red Football Joint Venture — the vehicle through which Malcolm Glazer, the US tycoon, and his family bought United and which is the club's ultimate parent — reported a pre-tax loss of £44.8 million, mainly because of interest payments. That rose during the period from £604 million to £649.4 million because of the way that interest on “payment in kind” loans continued to roll up. Piks are loans on which no interest is payable until the end of the loan term.

United's turnover was up sharply in all three of its main areas, with matchday receipts rising by 10 per cent to £101.5 million, while commercial income — which takes in merchandising, sponsorship and licensing agreements - rose by 14 per cent to £64.0million. The biggest increase was in TV revenue which, on the strength of United's Champions League triumph, surged 48 per cent to £90.7 million.

The sale of players, including Giuseppe Rossi, Gerard Piqué, Chris Eagles and Gabriel Heinze, boosted profits by £21.8million.

The club made new commercial partners during the year, including Saudi Telecom and Diageo, while existing partnerships with Budweiser, Travelcare and GlaxoSmithKline were renewed.