Manchester United's Finances Hit By Covid-19 Shutdown
The impact of Covid-19 on Manchester United’s finances has been revealed today in the club’s latest set of accounts for the three months to 31st March 2020.
Broadcasting and matchday revenues were impacted due to the postponement of three matches: one away Premier League match, one home Round of 16 Europa League match and one away FA cup quarter-final match.
Those factors have seen United’s matchday revenue fall by 8.2% to £29.1m and broadcasting revenues down by over 55% to £26m on the same period 2019.
During the reporting period the club’s Net Debt increased £127.4m to £429.1m, over the prior year quarter, due to an overall decrease in cash and cash equivalents and adverse movements in the GBP:USD exchange rate.
As of 31 March 2020, the club had £90.3m of cash balances together with access to an additional £150m available under its revolving credit facility.
However, commercial revenue for the quarter remained strong at £68.6m, an increase of £2m over the prior year quarter.
Sponsorship revenue was £44.7m, increasing £3.1m, or 7.5%, over the prior year quarter, primarily due to new sponsorship deals.
Retail, Merchandising, Apparel & Product Licensing revenue decreased £1.1m to £23.9m, in part due to the closure of the Old Trafford Megastore in mid-March.
Commenting Executive Vice Chairman, Ed Woodward, said: “Our focus remains on the health and well-being of our colleagues, fans and partners around the world and we are extremely proud of how those connected to the club have responded during this crisis.
“Since the start of the pandemic, Manchester United and our Foundation have provided assistance to hospitals, charities and schools in our communities, as well as support for frontline workers and vulnerable fans.
“These actions reflect our core values as a club and the resilience through adversity that we have demonstrated many times throughout our long history and will do so again to weather these current challenges.
“In that spirit, we look forward to the team safely returning to the pitch and building on the exciting momentum that Ole and the players had previously achieved, while taking all necessary steps to protect public health. Our thoughts remain with all those affected during this unprecedented time.”
Manchester United has taken a range of measures to support its communities in response to the COVID-19 pandemic, including donations to food banks and outreach to elderly and disabled supporters.
In addition, the Manchester United Foundation has committed over £1m to community initiatives, including the supply of 60,000 meals for health workers in local hospitals and support for schools and vulnerable children across Greater Manchester.
The club has also used its media platforms to deliver public health messages and to support frontline workers around the world.
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