Manchester United reveal debt has Soared by £127.4m to £429m, with revenues slumping and TV companies in line for a £15m rebate because of the coronavirus shutdown.
Manchester United have revealed the extent of the coronavirus crisis on their finances in the latest quarterly results with the club’s debt rising by £127.4million or 42 per cent.
United announced on Thursday that they are withdrawing their previous forecast for 2020 ‘given ongoing uncertainty due to COVID-19 and the evolving related economic and financial consequences’.
But the latest figures show just how much United and other Premier League clubs have been hit by the two-month football shutdown and also confirmed they will have to repay £15m to broadcasters.
The standout figure is that the club’s net debt has shot up to £429.1m due to loss of income and the pound weakening against the dollar.
Matchday revenue was down by £2.6m due to United’s remaining home games in the Premier League and Europa League being postponed.
Retail revenue also dropped by £1.1m due to the closure of the club’s megastore, although there was still a small increase in both commercial (£2m) and sponsorship revenue (£3.1m). United’s executive vice-chairman Ed Woodward described the current crisis as one of the largest in the club’s long history.
‘Our third quarter results published today reflect a partial impact that the pandemic has had on the Club, while the greater impact will be in the current quarter and likely beyond,’ he said.
‘There are still profound challenges ahead, and for football as a whole, and it is safe to say it will not be ‘business as usual’ for some time.
‘Our club is built on a solid foundation. We remain one of the most popular teams in the most followed global sport and have created a strong financial base with diverse revenue streams.
‘However, the repercussions of the pandemic are now being felt widely across the football community, not just by clubs, but also by players, supporters, broadcasters, sponsors and many other stakeholders.
‘We must recognise that this crisis will not disappear overnight and that the world which emerges will be different from how it was before.
‘That will create challenges for football, like many other industries, but it also brings an opportunity for innovation and creativity as we explore options for resuming football in ways that still protect public health.
While nobody is claiming that football is the most important thing at this time, our sport can play a role in helping restore morale and bringing people back together as societies recover. Operationally, the impact of the pandemic and measures to prevent further spread continues to disrupt its businesses in a number of ways, most significantly in Broadcasting and Matchday operations.
