Manchester United’s net debts rise astronomically due to devastating effects of Coronavirus

Manchester United’s net debts rise astronomically by £127.4 million due to the devastating effects of the Coronavirus in the past few months.

Manchester United a club with superfluous income due to its commercial ability is now facing a mounting debt due the absence of its footballing activity due to the lockdown imposed because of the coronavirus.

According to a report by the Sun, Manchester United’s debt has risen by £127.4 million to £429.1 million. There have also been movements in the pound to dollar exchange rates which have affected the club.

The club today released their quarterly figures up to March 31st which is nearly three weeks after football was suspended. While the full impact will not be felt until the next set of figures, the loss of broadcast revenue has clearly been a major factor.

A Manchester United statement explained: “Broadcasting revenue for the quarter was £26.0 million, a decrease of £27.8 million, or 51.7%, over the prior-year quarter, primarily due to an estimated £15.0m Premier League rebate due to broadcasters,”

“Following delay and broadcast schedule changes to the 2019/20 football season, non-participation in the UEFA Champions League, and the impact of playing two fewer Premier League away games.”

“Matchday revenue for the quarter was £29.1 million, a decrease of £2.6 million, or 8.2%, over the prior-year quarter, including the impact of postponement of the Round of 16 Europa League home match and closure of non-match day operations in mid-March.”

In spite of this, Manchester United reportedly remain in a healthy financial situation, announcing that they have plenty of money in the bank to help them through this difficult period for football.

Also read: Jadon Sancho’s teammate advices him against joining Manchester United

The club has £90.3m of cash balances plus access to an additional £150m available under what they refer to as a revolving credit facility. However, their biggest concern would be to return of season amidst all of it.

About the author

Tanish Chachra

Tanish Chachra is the Motorsport editor at The SportsRush. He saw his first race when F1 visited India in 2011, and since then, his romance with the sport has been seasonal until he took up this role in 2020. Reigniting F1's coverage on this site, Tanish has fallen in love with the sport all over again. He loves Kimi Raikkonen and sees a future world champion in Oscar Piastri. Away from us, he loves to snuggle inside his books.

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