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wanted_to_upvote t1_ixitmjv wrote

Reply to comment by Legal-Software in Manchester United may be up for sale, so is the team profitable? [OC] by NicuCalcea

They are likely cash flow positive and their value is increasing each year.

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burnshimself t1_ixj9zxe wrote

They are not cash flow positive, they’ve needed to take out debt to fund the business nearly every year.

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wanted_to_upvote t1_ixjt4xs wrote

The debt may be to buy capital goods and expand future business which would not make it cash flow negative if they can make the payments on it.

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burnshimself t1_ixjuca5 wrote

It’s not doing that, it’s a football club. They don’t have any capital equipment of note to invest in, they are not a manufacturing business. Their only property is their stadium, which is a fraction of their spending (8m in FY2022) compared to their acquisition of contracts and intangibles spend (115m in FY2022). The amort is real business expense that gets consumed once the player’s contract expires. The team is a money pit.

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