Manchester United debt has reportedly risen by a staggering £127.4m over the last quarter due to the repercussions of the coronavirus crisis in the UK. Most of that debt is tallied due to the loss of Manchester United revenue through the TV, commercial and sponsorship deals. A major cause for concern for Manchester United and the club's vice-chairman Ed Woodward is that the net debt has shot up to £429.1m over the last couple of months with the addition of the £127.4m debt over the last quarter. The fallen English giants have also lost £123m in revenue over the past year when the calculations were made in March.
With the Premier League coming to a standstill, so has the Manchester United income. According to reports from the Daily Mirror, Manchester United net debt risen to £429.1m in the past year. The 20-time English champions have already registered a substantial increase of debt up to 42 percent over the last quarter and with no football being played since the past two months, the halt has had a major impact on Manchester United debt. A large chunk of the Manchester United revenue stems from the broadcasting deals but with the Premier League season suspended, the inflow of income for the Premier League side has hit new lows.
3rd Quarter Revenue Results:— The United Stand News (@NewsUnitedStand) May 21, 2020
Commercial ⬆️ 3% Now £68.6m
Broadcasting ⬇️ 51.7% Now £26m
Matchday ⬇️ 8.2% Now £29.1m
Total ⬇️ 18.7% Now £123.7m
NET Debt ⬆️42.2%
Manchester United Debt Stands at £429.1m
Manchester United's broadcasting revenue has fallen more than 50 percent this quarter resulting in a loss of £27.7m. That figure includes the estimated £15m which needs to be repaid towards broadcasting companies Sky Sports and BT Sports. Manchester United are also expected to lose matchday revenue by £2.6m as the remaining games at Old Trafford will be held behind closed doors, if and when the football resumes. The total Manchester United revenue has dropped by £123.7m or 19 percent over the last year when calculations were made in March.
Man United's retail revenue also fell by £1.1m as the club's megastore was forced shut due to the coronavirus. However, there was a small victory for the Red Devils with a slight increase in both commercial (£2m) and sponsorship revenue (£3.1m). Manchester United vice-chairman Ed Woodward said that the current crisis is one of the largest in the club's 142-year-long history and although the coronavirus impact is significant, the club has a 'solid foundation' and reiterated that United will find a way to climb out of that hole.