Manchester United feels Brexit effect on financial results
Club’s net debt rises to £337.7m due to strengthening dollar exchange rate
Manchester United stadium. Photograph: iStock
Manchester United’s debt has risen by 18 per cent, to close to £338 million (€393 million), in part due to Britain’s decision to leave the European Union.
The increased figure is included in financial results United have reported to the New York Stock Exchange for the first quarter of the new financial year.
The club’s revenue for the three months ending September 30th, 2016 is down by 2.8 per cent, from £123.6 million to £120.2 million, while operating profit is down by 35 per cent, to £6.2 million. This is in part due to the club’s failure to qualify for the Champions League.
The standout figure, however, is the net debt, which has risen from £286.2 million to £337.7 million. According to the results, this is due to “the strengthening US dollar; with the USD/GBP exchange rate moving from 1.5128 at September 30th, 2015 to 1.2941 at September 30th, 2016”.
The exchange rate has been directly affected by Brexit.
“While our financial results for this quarter reflect the impact of our non-participation in the Uefa Champions League, we are pleased that we remain on track to deliver record revenues for the coming year,” said Ed Woodward, United’s executive vice chairman.
“During the quarter we added a number of top quality players to our squad, which once again demonstrates our determination to challenge for trophies.”
United remain on course to top last year’s record revenues figure of £515.3 million, forecasting overall revenue of between £530 million and £540 million for the end of the financial year.
The team are currently sixth in the Premier League, eight points behind leaders Liverpool.