Man Utd have posted their latest financial results and it has revealed some of the knock-on effect from the economic fallout from the coronavirus pandemic.
With games suspended and the subsequent blow that deals, it’s to be expected that clubs across the world will see much different financial results than expected and hoped for in the last few months.
As noted by The Guardian, Man Utd are no different as they made a pre-tax loss of £28.55m in the third quarter of the fiscal year from January 1 to March 31, which in more context is compared to the £11.117m pre-tax profit that they made in the same period last year.
Further, it’s noted that their net debt increased by £127.4m to £429.1m in the 12 months to March 31, while broadcasting and matchday revenue unsurprisingly fell following on from the £15m Premier League rebate to broadcasters due to the delay and changes in the schedule for this season.
Other factors which aren’t directly linked to the coronavirus pandemic also contributed, with the lack of Champions League football also noted as an issue.
While broadcasting revenue fell by £27.8m, a decrease of 51.7%, matchday revenue dropped by £2.6m to £29.1m in the third quarter, and so this clearly lays bare the financial impact of the crisis for a top-tier club in recent months having been unable to play games.
It’s unclear if lower leagues will be able to survive without critical revenue and what steps will be taken to support them, but Man Utd executive vice-chairman Ed Woodward has insisted that while the club remain committed to helping the community and those in need of support during this difficult time, he is confident that they will ‘weather the challenges’ posed by the coronavirus outbreak.
“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,” he said.
“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.”
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