Manchester United’s latest financial figures have seen the club’s debt soar to £474.1m, as revenues drop drastically amid the financial impact of the coronavirus pandemic.
Football has been hit hard by the ongoing pandemic as the sport continues in the absence of supporters, a lack of matchday revenue having a damaging impact on club finances, with United‘s matchday revenues falling from £110.8m to £89.8m, the Red Devils losing around £5m for each behind-closed-doors game at present.
The impact of Covid-19 has seen a hit of around £70m on revenues at Old Trafford, their total revenue falling by 19% to a figure of £509m, whilst the club have operated at a loss of £23.2m for the 2019/20 season compared to an £18.9m profit the year before.
That loss was also swelled by a huge drop in broadcast revenue (£101m), owing to a rebate and the club’s absence from the Champions League last season, their third-placed finish last term and return to Europe’s elite a welcome boost ahead of next year’s figures.
— Samuel Luckhurst (@samuelluckhurst) October 21, 2020
The latest results are only dated until June, so there is set to be a continued financial hit in the absence of supporters with no fixed date yet set for the potential return of fans into English stadiums.
Despite an insistence from executive vice-chairman, Ed Woodward, that the club remain in a strong financial position, the huge increase in the Red Devils’ debt will be a major concern to supporters, the figures showing their debt has risen from £203.6m to £474.1m – an increase of 132.9%.
Speaking on the club’s finances, Woodward said in a statement that United are ‘adapting to the significant economic ramifications of the pandemic’, but also outlined the club’s commitment to ‘playing a constructive role in helping the wider football pyramid’ and ‘making the English game stronger and more sustainable in the long-term’.
United insist they remain in a financially flexible position despite their rising debts, however, owing to a figure of £51.5 million in cash reserves and the availability of £150 million in credit.