BBC SPORT | Football | Eng Prem | United on a banker



By Dan Warren BBC Sport Online

Arsenal may have taken Manchester United's place as the most feared team in England - but the Red Devils' position as football's financial champions is not under threat.

Another financial year has passed, and profits for the year at Old Trafford are up 48% to a whopping �32.3m.

Man Utd score with profits

That is more than some smaller clubs have spent in the past 100 years - but does it mean that Sir Alex Ferguson's team are destined to become even more dominant?

And will they be able to simply buy themselves some more world stars if they again fail to win a trophy?

Not necessarily.

True, United are arguably the most financially secure football team in the world - but their continuing position at the top of the pile is not assured.

Ferdinand cost United �30m
United's figures do not include the purchase of Ferdinand

And it is unlikely they will be raiding other clubs for more star assets when the transfer window re-opens in January.

One crucial aspect missing from the United balance sheet - which ran up until the end of July - is the �30m purchase of Rio Ferdinand.

That almost wipes out their profit in one fell swoop - although against that they are still owed around �17.2m in transfer fees, including a hefty chunk from Lazio for Jaap Stam.

The profits are still big enough to make most clubs' accountants foam at the mouth.

But United's strict financial framework, in which they refuse to pay more than 50% of their turnover on wages, does not give them much room for manoeuvre in the transfer market.

They currently pay �70m in salaries, meaning they would have to increase turnover significantly to accommodate the wages of any high-profile signings.

Still, big money sponsorship deals with Nike, Pepsi and Budweiser will only benefit the club, as will potential TV deals with countries in which United have a strong fan base.

And, of course, United's financial policy is designed to keep the club profitable - something many of their rivals can but dream about.

How much clubs spend on player salaries

Man Utd: �70m
(48% of turnover)

Leeds Utd: �43.3m
(50% of turnover)

Liverpool: �48.9m
(59% of turnover)

Arsenal: �40.7m
(65% of turnover)

Chelsea: �50.2m
(75% of turnover)

If the Reds were willing to make a loss - as most other clubs do - their spending power would be immense.

United's spendthrift neighbours Manchester City have already reported a �13.9m loss.

And Leeds' sale of Ferdinand will merely balance their �28.2m loss built up after years of heavy transfer market activity.

It is even worse north of the border, where Rangers chairman John McClelland is attempting to assure shareholders the club's �52m debt is nothing to be alarmed over.

It seems most clubs are happy to make losses, and are quicker to please their fans than their accountants.

But just in case United fans get too smug, they should remember their own future is not assured.

A significant slice of their current turnover comes from their Champions' League participation.

United finished third in the league last year, and have been less than convincing this season - if they failed to qualify, the pain in their wallet could match the pain of their fans.