Manchester United have revealed that the club faces a 19% drop in revenue for the 2019/20 season, down from £627.1m in 2018/19 to £509m, due to the coronavirus pandemic. Effects of diseases are highlighted.
The club recorded an operating profit of just £5.2m, down from £50m last season, and an overall net loss of £23.2m, compared to a net profit of £18.9m for 2018/19. was
Net debt stands at £474.1m, more than double the £203.6m 12 months ago.
Man Utd lost around 20% of expected revenue in 2019/20/OLI SCARFF/Getty Images
The impact of the crisis was already visible in the financial figures for the three months ending 31 March 2020, when the club confirmed for the first time a decline in revenue and loss.
The financial figures for the three months ending 30 June 2020 cover the period during which professional football in England was largely shut down. ‘Project Restart’ only started at the end of June and clubs across the country saw a gap in their revenue streams.
Along with the games being postponed, United also struggled with the forced closure of its megastore, museum and tour operations and Red Cafe. But while commercial revenues from various partnerships have been healthy overall, broadcasting and matchday revenues have been hit hard.
Broadcast revenue in particular has been the biggest faller – down £101m from last season – partly due to discounts due to campaign disruptions. The club also missed out on broadcast revenue as several games were delayed until the 2020/21 financial year and due to not participating in the Champions League.
“We are focused on protecting the health of our teammates, fans and community while adjusting to the significant economic impact of the pandemic. In this context, our top priority is to get fans back into the stadium safely and as quickly as possible.” ” said Ed Woodward.
Ed Woodward says safely reopening the stadium is a priority / Richard Heathcote/Getty Images
“We are also committed to playing a constructive role in supporting the wider football pyramid during these difficult times, while exploring options to make the English game stronger and more sustainable in the long term.
“This requires strategic vision and leadership from all stakeholders, and we look forward to helping drive this process forward in a timely manner.
“On the pitch, we have strengthened the squad over the summer and we are committed to our goal of winning trophies, playing entertaining games, attacking football with a combination of academy graduates and high-quality recruits, while manage their resources carefully to protect up to – the club’s term flexibility.”
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