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Friday, February 9, 2018

Manchester United reports half-year loss due to US tax overhaul

Manchester United attributed a half-year loss of $18 million to the impact of US President Donald Trump’s tax overhaul but said it would not affect the English Premier League club’s ability to comply with football’s financial regulations.
The US corporate tax rate was cut from 35 percent to 21 percent in December. The changes required the team, which is owned by the American Glazer family and listed on the New York Stock Exchange, to make an accounting write off of 48.8 million pounds ($68 million), United said on Thursday.
It led to United reporting losses of 12.87 million pounds in the first half of the financial year after making a profit of 18.7 million pounds in the six months to Dec. 31 2016.
“(The tax changes) should be beneficial to the club in the long term, however we are still working through the details of the potential impact of the more complex aspect of the reforms with our advisers,” United chief financial officer Cliff Baty said in the earnings conference call.
“This is a non-tax accounting charge only, which has no impact on our financial competitiveness nor our ability to meet Financial Fair Play regulations.”
Trump referenced United being owned by a friend in a recent interview with British broadcaster Piers Morgan.
United’s revenue rose 10 percent year-on-year to 304.9 million pounds.