Manchester United are set to confirm a £12.3million drop in annual profits to £46million on Monday.

The figures represent the first to be released since Malcolm Glazer completed his takeover in the summer, but include only three months of the new 'Glazer era'.

United chief executive David Gill forecast the potential for a fall 12 months ago, with reduced TV money from the Premier League and lower income from the Champions League the key elements behind the announcement.

While an even earlier exit from Europe this season means there is no immediate prospect of profits rising substantially when the next set of results are announced in 12 months' time, Gill is confident the outlook for 2007 is particularly rosy.

"Like any business, we aim to push profits up year on year but our performance in the Champions League will have a knock-on effect," Gill told BBC Radio Five Live's Sportsweek programme.

"The forecast for 2006 is very good but I am not going to predict profits will be over £50million. But going forward, the new stadium expansion means there will be nearly 8,000 extra seats from the start of next season and the end of 2007 is looking very positive."

Gill also confirmed the club paid out £2.2million in agents fees over the previous year, the vast majority of which went in the second - and concluding part - of Wayne Rooney's £27million move from Everton in August 2004.

The Red Devils paid out £1.5million to Paul Stretford's Proactive group, although Gill defended the vast sum involved.

"Agents provide a service - the issue is who pays for it, the player or the acquiring club?" he said.
"We operate in a market for world class players and one of the costs in acquiring them is the service of an agent.

"In this particular situation, if Wayne had to pay, he would demand a higher salary. The money has to come from somewhere, it is just a reflection of the market place we are operating in."

Gill also confirmed United spent £6.6million in legal and banking fees during the protracted Glazer takeover, which the club's board were heavily in opposition to.

Yet Gill, who angered many fans by opting to stay in his position once the Tampa Bay Buccaneers owner completed his £790million buy-out, insists the club is now a far smoother-run operation.

"We know where we are now," he said. "At this time last year, we were caught up in a swirl of speculation which wasn't good for the business. Now we are working in a much more stable environment and there is a longer-term perspective to our operation, which wasn't necessarily available as a PLC.

"From where we stand now, we have a great deal to be positive about in the new era."

On the pitch, Alex Ferguson's side take on their fiercest rivals Liverpool at Old Trafford at 4pm today. League leaders Chelsea, meanwhile, host London rivals Charlton this afternoon.