Manchester United have benefited big time from an increase in revenue through TV and sponsorship deals which have seen the profits of the club grow, again.
United enjoyed profits of just over £22 million over the last six months of 2012 and was recently valued at $3 billion after shares in the club were floated on the New York Stock Exchange.
What this all means is something we already knew; the club is just going to continue going from strength to strength over the next few years.
This is very important for two reasons; financial controls and for when Sir Alex Ferguson retires.
The profits are significant because impending financial controls in the Premier League state a club cannot spend more than it is making.
Increased profits means the club has a little extra cash to spend before the break even point, which is vital in terms of wages and being able to spend money on transfers.
They are also significant considering the debts of £366 million the club has and a total wage bill of around £85 million. If there were no profits then the team and the club’s transfer policy could implode.
It’s significant as far as Fergie’s retirement because he will not be happy leaving the club in an unstable state.
It’s also important for the manager that United eventually appoint to follow Ferguson because United will be looking for a seemingly effortless transition both on and off the field.
It will be very important for the club and Ferguson that he can retire and walk away safe in the knowledge that the person who follows him has the same range of possibilities.
This is in terms of the transfer market and being able to ensure the constant growth and maintenance of the team.
United fans, what do you make of the news?