www.red11.org DAILY NEWS
Date: Tue Sep 29 05:14:24 GMT+00:00 1998
Mail: barry@www.red11.org
This Issue:
1. NEVILLE HAPPY WITH A EURO DRAW
2. Big-spending Ferguson reveals a canny streak
3. Transfers cap profits at bid target Man Utd
4. Team news CHAMPIONS' LEAGUE
5. Man Utd shops to take on the world
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Daily RED Trivia Tues 29th September:
1957: Les Sealey born in Bethnal Green, London. In two spells Sealey collected an
impresssive array of silverware; an FA Cup Winners medal in 1990, European Cup
Winners Cup medal in 1991 and losers medals from the 1991 and 1994 League Cup
Finals. Initially joined the Reds from Luton Town on loan, making his debut
At Queens Park Rangers in April 1990. Between 1990-94 he made 55
appearances in United's goal. He moved to Blackpool in July 1994.
1976: United beat Ajax Amsterdam (Holland) 2-0 at Old Trafford in the UEFA Cup
1st Round 2nd leg watched by 58,918. Sammy McIlroy and Lou Macari scored the
goals to ensure a 2-1 aggregate win. Team was: Stepney, Nicholl, Houston, Daly
(Albiston), Greenhoff, Buchan, Coppell, McIlroy, McCreery, Macari, Hill (Paterson).
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Next 4 games:
Result/Fixture Index:
http://www.red11.org/mufc/fix9899z.htm
Wed 30/9 Bayern M (A) CL
Sat 3/10 Southampton (A) PL
Sat 17/10 Wimbledon (H) PL
Wed 21/10 Brondby (A) CL
UNITED Stats v Southampton are here:
http://www.red11.org/mufc/stats/vssouthampton.htm
*** TEAM RESULTS - MANCHESTER UNITED - AS AT 24/09/98 ***
Date Opposition Score Pos. Attend.
--------------------------------------------------------------------
15/08/98 Leicester City Home D 2-2 11 55,052
22/08/98 West Ham United Away D 0-0 11 26,039
09/09/98 Charlton Athletic Home W 4-1 9 55,147
12/09/98 Coventry City Home W 2-0 5 55,193
20/09/98 Arsenal Away L 0-3 10 38,142
24/09/98 Liverpool Home W 2-0 3 55,181
Worthington Cup
Draw for the cup
MANU V Bury to be played week commencing 26th October.
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"Are you Against the BSkyB takeover? Please Read! Click on image!"
"Are you Against the BSkyB takeover? Please Read! Click on image!"
Subject: Big-spending Ferguson reveals a canny streak
Tuesday, September 29, 1998
Ken Lawrence reports on a manager who looks after the pennies as the millions mount
Alex Ferguson has lived up to the image of the tight-fisted Scot while spending £78million as Manchester United manager.
Despite shelling out £10.75m on Jaap Stam, £4.4m on Jesper Blomqvist and £12.6m on Dwight Yorke this season, Ferguson has cost United only £3.41m a year on average in his 11 years and 10 months at Old Trafford because of his urge to get value for money when selling players.
United yesterday announced pre-tax profits of £14.1m, down almost half on last year after the summer signings of Stam and Blomqvist, while the investment in Yorke will be shown on next year's balance sheet.
But if the Old Trafford club's prospective new owner, Rupert Murdoch's BSkyB, is concerned that the fall suggests the start of a downward spiral, it can relax in the knowledge that the club's manager has recouped almost half of what he has spent in the past.
Today, the arrival of United in the city that was the scene of the Munich air disaster will be a poignant one. But, as Ferguson and his team bridge the 40-year gap between the late Sir Matt Busby and his legendary Babes, the patron saint of Old Trafford would surely be as proud as punch of the current manager.
Sir Matt could never have imagined that, one day, the club he raised from the 1958 disaster to become champions of Europe would be one of the wealthiest in the world, with a near £90m turnover.
Despite the loss of two home games and reduced replica kit sales, turnover dropped only £100,000 to £87.8m last year while profits before transfer fees increased from £27.3m to £29.6m.
Wages also rose by £4m but the planned 12,500 increase in Old Trafford's capacity will boost income by £4m per year. United's third year in the Champions League brought profits of £12m while 1.3m people attended home matches.
Yet for all the seven-figure finances, Ferguson has continually chipped away at his transfer deficit. Big-money newcomers such as Yorke, Stam and £7m Andy Cole create the headlines, but in the background an unknown called Wayne Heseltine left for £40,000, Deniol Graham for £50,000 and Simon Ratcliffe for £25,000 has also nurtured youngsters such as David Beckham, Ryan Giggs, Nicky Butt, Paul Scholes and the Neville brothers, who on today's market would be worth at least £80m, while the club have won four championships in the 1990s.
Yet Ferguson, who earns about £650,000 per year, will not only have to wait until next summer to be given confirmation that he will receive another contract but even then is unlikely to be given the £1m-a-year enjoyed by other top names.
For once, in Ferguson's case, the figures simply don't add up.
Manchester United Team Value
Value when Estimated
signed (£) value (£)
Peter Schmeichel 550,000 4m
Gary Neville Free 4m
Denis Irwin 625,000 2m
Ronny Johnsen 1.2m 3.5m
Jaap Stam 10.5m 7m
David Beckham Free 15m
Nicky Butt Free 6m
Roy Keane 3.75m 12m
Jesper Blomqvist 4.5m 4.5m
Ryan Giggs Free 15m
Dwight Yorke 12.6m 12.6m
Total: 33.725m 85.6m
"Are you Against the BSkyB takeover? Please Read! Click on image!"
Subject: Transfers cap profits at bid target Man Utd
By Keith Weir
LONDON, Sept 28 - English soccer club Manchester United *, subject of a billion dollar bid by Rupert Murdoch's BSkyB *, said on Monday its annual pre-tax profits were halved by heavy investment on new players.
The premier league club, which suffered a rare barren season in 1997/98, reported an 8.4 percent rise in profit before tax and transfer fees to 29.6 million pound ($50.14 million) in the year to end-July, at the top end of share analysts' forecasts.
However, the recruitment of Dutch defender Jaap Stam and Swedish midfielder Jesper Blomqvist for the new season cost the club over 15 million pounds. Profit after tax and transfers was 10 million pounds, down from 19 million a year earlier.
United, deposed as English champions by Arsenal last season, have spent a further 12.6 million pounds since the financial year-end on striker Dwight Yorke from Aston Villa *.
British pay TV giant BSkyB, 40 percent owned by Murdoch's News Corp *, has made a 623 million pound bid for the club, which the United board has recommended. BSkyB sees the deal as a key part of its plans to develop content for the multi-channel digital TV era.
United fans initially protested vocally over plans to make the club part of the Murdoch media empire but opposition has since become more subdued.
Britain's Office of Fair Trading is also looking at the deal, with analysts saying it is very hard to predict whether it will recommend clearance or further scrutiny by regulators at the Monopolies and Mergers Commission.
United shares slipped a penny to 220p on Monday, the discount to the 240p BSkyB offer reflecting the regulatory uncertainty.
BSkyB has the rights to live coverage of premier league matches until 2001. Its move for United has prompted a flurry of takeover talk as other media players look at the prospects of buying into British soccer clubs.
Premier league clubs Aston Villa and Tottenham Hotspur * both gained on Monday after a newspaper report said they were bid targets for commercial TV company Carlton Communications *. Villa shares jumped 47-1/2p, or 7.20 percent, to 707-1/2, although no trade was reported at this level, while Tottenham firmed 3-1/2p to 77-1/2p.
United's global appeal was underlined by the announcement on Monday that it had established a new subsidiary to develop its merchandising operations overseas. Its strategy is to develop outlets in the Far East, Middle East and Scandinavia via franchise partners.
The club has been involved in talks on a proposed European Super League but stressed again that it remained committed to the premier league and would not join a new competition until what it called "all appropriate consultations" had taken place.
Total staff costs grew by 5.1 million pounds in the period, with player wages accounting for four million pounds of that rise as improved contracts kicked in. Total staff costs rose to 31 percent of turnover from 25 percent but United said this remained the best ratio in the premier league.
Turnover was unchanged at 87.9 million pounds as higher income from a new BSkyB TV deal with the premier league helped to offset a decline in merchandising sales.
($1=.5903 Pound)
"Are you Against the BSkyB takeover? Please Read! Click on image!"
"Are you Against the BSkyB takeover? Please Read! Click on image!"
Subject: Man Utd shops to take on the world
By Roger Cowe
Tuesday September 29, 1998
Manchester United, which faces takeover by Rupert Murdoch's BSkyB, has developed plans to go global. The football club aims to have 150 United shops around the world within three years, selling merchandise such as replica kit, videos and memorabilia.
The first will open at Dublin airport next month, to be followed by airport shops in Copenhagen and Hong Kong early next year. The club is looking for a suitable site in London.
The expansion will be carried out with a small number of retail partners. The first to be announced is a subsidiary of Swissair, which will operate the stores in Copenhagen and Hong Kong. A second deal will be signed with another airport shop specialist in the next few months, and the club is looking for retailers with experience in Asia and the Middle East.
Professor Sir Roland Smith, the United chairman, said yesterday in presenting results for the year to July: "We have established a new subsidiary, Manchester United International. The strategy is to develop outlets in the Far East, Middle East and Scandinavia, via franchise partners."
He acknowledged that economic turmoil in much of Asia had hit the club's exports this year. "Our research indicates that medium-term prospects for the business are more encouraging."
Merchandise sales over the year were down from £29 million to £24 million, in part due to an accounting change but also because of impending launch of a new kit and Asia's problems.
Martin Edwards, the United chief executive, insisted that the merchandise bubble had not burst.
Peter Kenyon, his deputy, said the club had recruited design consultants experienced with leisure brands such as Levi, and aimed to create the kind of "retail experience" pioneered by Nike stores rather than a straightforward shop.
"We want to get some of the atmosphere of Old Trafford into the stores." Mr Kenyon said there would be three store formats. The first would follow the megastore concept already developed at the club's Old Trafford ground, which is the size of a small supermarket. The club will also have stand-alone shops similar in size to conventional sportswear outlets, and merchandise will also be sold through "concessions" in department stores.
Mr Kenyon refused to speculate on the expected level of sales or how much United would invest in the ventures.
Mr Edwards reported that heavy transfer fee spending had cut profits, which fell from £27 million to £14 million. Before transfer fees on players such as the Dutch defender Jaap Stam, profits edged up to nearly £30 million.
He said the club's finances were very strong but would be even stronger following a takeover by BSkyB.
"We are trying to compete on the world stage," Mr Edwards said. "We believe involvement with Sky will give us more opportunities."
"Are you Against the BSkyB takeover? Please Read! Click on image!"
Pic Link today is http://www.red11.org/mufc/imusa.htm
Barry
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William
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