Manchester United have announced that their debt has surpassed £474million after their income was massively reduced by the impact of coronavirus.
United saw a £23.2m loss accumulated for the 2019-20 season, which was due mainly to 41.9 per cent drop in broadcasting income.
But United’s net debt is up to £474.1m from £203.6m 12 months ago, which equates to a staggering 132.9 per cent rise.
This is mainly due to a £256m decrease in cash and cash equivalents – namely on fees for players including £80m Harry Maguire, loss of matchday receipts and deferred sponsorships – and the adverse movements in the exxchange rate between the pound and the dollar.
The club say the principal debt – which relates to the Glazer family’s leveraged takeover – remains the same.
However, the balance sheet will benefit from an £11m six-month extension to the club’s deal with shirt sponsor Chevrolet .
Manchester United released their latest quarter financial results on Wednesday morning
Executive vice chairman Ed Woodward was left to discuss the club’s debt rising by 133 per cent
Revenue dropped by 19 per cent to £509m and it was another difficult read for United supporters in what has been a tricky year of rising debt and diminishing revenue.
‘Our focus remains on the health of our colleagues, fans and community while adapting to the significant economic ramifications of the pandemic,’ executive vice chairman Ed Woodward said following the release.
‘Within that context our top priority is to get fans back into the stadium safely and as soon as possible.
‘We are also committed to playing a constructive role in helping the wider football pyramid through this period of adversity.’
Finances continue to take hits with more games this season played behind closed doors
United owners Avram Glazer (left) and Joel Glazer will take a heavy hit amid the Covid-19 crisis
Woodward warned at the May release that things could continue to get worse from a financial stand-point with fans remaining unable to return to games in any capacity.
Retail revenue dropped by £1.1m due to the closure of the club’s megastore and that continued with fans being kept away due to rising numbers of coronavirus cases in England.