The financial impact of COVID-19 has deeply impacted Manchester United. Staggering debts, operating losses and revenue hits, dominate United’s financial landscape.
However, the Red Devils are not alone – they represent the general football community in an economically damaged industry. Additionally, the implications of these statistics has also spiralled its way down the leagues.
Manchester United are one of the only clubs that are publicly listed. Therefore, their financial position provides an insight to the rest of the industry.
Manchester United See Staggering Financial Losses Amidst Pandemic
Manchester United’s Key Figures
The first thing to note is the total revenue loss from last year. The total figure dropped 19% from last year’s £627 million to £509 million. This was particularly integral to the findings, as the club expected this year’s figure to lie between £560-580 million. The last financial quarter sparked the biggest concern, with a 38% reduction on the same period last year.
Another key figure was the £23.2 million loss the club made, compared to a £18.9 million profit in the previous year. However, the most shocking statistic lied in the club’s debt. The club’s debt rose from £270.5 million to £474.1 million, something the club largely blame on the on-going pandemic.
Has COVID-19 Impacted on All of Their Financial Difficulties?
Some areas remain unclear, but the general consensus is that Coronavirus is much to blame. In fact the £70 million hit on revenues has accumulated with a loss of match-day revenue, season ticket sales and other COVID-19-related setbacks.
The club’s loss of revenue has also been attributed to a hold-up in sponsorship money. With the total figure of deferred payments accounting for £80 million. The club remain adamant that they are still well-funded and that they are able to cope. United still have £51.5 million in reserve, with an additional £150 million of credit available to them.
However, the economic impacts of COVID-19 are still more prominent in the lower leagues, where clubs are reliant on match-day revenue and ticket sales.
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