Manchester United executive vice-chairman Ed Woodward released the club’s latest financial figures and revealed record revenues on Tuesday.
The under-fire chief, who watched his club’s disappointing start to the season, announced annual revenues had reached £627.1million.
After managing director Richard Arnold discussed the club’s App and mentioned ‘China-specific content’ – in addition to social media growth – and chief financial officer Cliff Baty talked about the cost of Europa League football (which will see broadcasting revenues reduced over the next FISCAL year), the time came for Woodward to deal with investor questions.
Firstly, an investor asked Woodward to explain what a loan player was.
“You mentioned player loans, I sometimes find that a little confusing. I get the transfer market but can you explain why loans have taken off and what they actually mean?”
Woodward subsequently explained how the loan system works, but the investor was still not certain and followed up with:
“Let me ask directly, is a loan a way to work around paying agent fees?”
Woodward responded by declaring that “loans have been happening for many years in the industry and it is where we retain the player and they move for a period of time. They could theoretically come back in January, but you have a payment you received for wages, or could receive more than the wages, described as loan-fee.
“It’s an opportunity if you have too many players in one position, then you make look to loan them.”