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Commercial Revenue.


In the previous quarter (to December 2017 ) Unitedís commercial revenue fell by 2% compared to previous year. For this most recent quarter (to March 2018), commercial revenue has flatlined at 0% compared to previous year. Certainly there is an emerging problem when compared to the stellar growth of previous year. Lends weight to the Gossip piece in RN253 on Arnold attempting to reverse this trend in commercial revenue. The final quarter to June will give us the full year picture.


Debt.


As ever United report the Net Debt which is £301m for this quarter. This is fairly misleading because this is gross debt of £463m minus cash in the bank of £162m.


Gross debt (the true amount of debt) is still £463m. Highest in world football. Deducting cash balance off it to get 'net debt' is not that meaningful because cash balances naturally fluctuate. United's revenue stream is fairly lumpy.


Unitedís debt was borrowed in the US and is denominated in US dollars. United are not paying off the debt. The US dollar amount has remained the same. But because the financial report is in £, any exchange rate fluctuation between the £ and $ affects the amount reported. Therefore, when United report that Ďnet debtí has decreased by £80m, this does not deserve a pat on the back. Itís the result of exchange rate movement or amount of cash in the bank at any one time which can change day to day.