The world's richest football club, Manchester United Plc, reported a 34 per cent decline in half-year profit today on lower gains from player sales.
However, it said it is well placed both on and off the field.
The club reported pre-tax profits for the six months to January 31st of £20.3 million sterling (€29.4 million), slightly above analysts forecasts, with the fall due largely to one-off profits on the sale of Jaap Stam to Lazio and Andy Cole to Blackburn in the previous reporting period.
The team said its wage bill rose to £39.7 million in the half-year, or around 43 per cent of turnover, but will rise to around its self-imposed ceiling of 50 per cent for the full year.
Group turnover continued to rise to finance the increased wage bill, up 13 per cent to £92.6 million, as the club benefited from more cup games played at its Old Trafford ground and higher media revenue.
The team, second in England's Premier League and through to the quarter-finals of the European Champions League for a record seventh successive year, said underlying operating profits before player amortisation rose 32 per cent - driven by a new partnership with sportswear group Nike which began last summer.
"Looking ahead, we have a clear strategy focusing on the development of media rights, the conversion of more fans to customers and the leveraging of our global brand. This will ensure that Manchester United is well placed both on and off the field," said Chief Executive Peter Kenyon.
Shares in Manchester United have surged 25 per cent since the start of the year as they have attracted a growing band of high-profile investors with Irish racecourse magnates John Paul McManus and John Magnier raising their stake to 10.4 per cent.
The shares closed yesterday at 128 pence. The half-year dividend rose 5 per cent to 0.67p/share.