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.
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.