Man United’s net debt increases by over €140m
Club has also withdrawn its previous revenue predictions for the year due to pandemic
Manchester United have felt the financial pinch amid the coronavirus crisis, with executive vice-chairman Ed Woodward vowing to “weather these challenges” as a return to action edges closer. Photo: Richard Sellers/PA Wire
Manchester United’s net debt increased by £127.4m (€141.63m) to £429.1m (€477.03m) in the 12 months to March 31st 2020, the club’s latest set of accounts have revealed.
United made a pre-tax loss of £28.55m (€31.74m) in the third-quarter period from January 1st to March 31st, compared with a £11.117m (€12.35m) pre-tax profit in the same period last year, because of the initial impact of the coronavirus pandemic and adverse movements in the GBP:USD exchange rate. Net finance costs for the quarter were £25.3m (€28.13m) because of the exchange rate, an increase of £22.2m (€24.68m) on the same period last year.
The club has also withdrawn its previous revenue predictions for the year of £560m-£580m (€620m-€645m) owing to the impact of the pandemic.
Broadcasting revenue fell by £27.8m (€31m) to £26m (€29m)– a decrease of 51.7 per cent – because of a £15m (€16.6m) Premier League rebate to broadcasters following the delay and changes to the broadcast schedule for the 2019-20 season, non-participation in the Champions League and the impact of playing two fewer Premier League away games.
Matchday revenue for the quarter was also down, by £2.6m to £29.1m, because of the postponement of the last-16 Europa League home game, one Premier League away game and the FA Cup quarter-final at Norwich.
United’s executive vice-chairman, Ed Woodward, said the club were well-positioned to “weather the challenges” confronting football.
“Since the start of the pandemic, Manchester United and our Foundation have provided assistance to hospitals, charities and schools in our communities, as well as support for frontline workers and vulnerable fans,” said Woodward.
“These actions reflect our core values as a club and the resilience through adversity that we have demonstrated many times throughout our long history and will do so again to weather these current challenges.
“In that spirit, we look forward to the team safely returning to the pitch and building on the exciting momentum that Ole [Gunnar Solskjær] and the players had previously achieved, while taking all necessary steps to protect public health. Our thoughts remain with all those affected during this unprecedented time.” – Guardian