English top-flight club, Manchester United, recently announced its revenue for the fiscal year of 2019/20 ending in June 2020. The club’s net debt increased by 133% to £474.1million from £270.5million. However, due to the economic uncertainty caused by the pandemic amidst fears of a second wave of COVID-19, the club has refused to issue revenue guidance for the 2020/21 financial year.
This is according to KPMG Football Benchmark Club Finance and Operations Tool and club’s press release.
What you should know
- Manchester United’s net debt has increased in the fiscal year of 2019/20 to £474.1million, an increase of 133% compared to £270.5million in the previous year.
- The club posted a cumulative revenue of £509million for the 2019/20 fiscal year which ended in June 2020 and also represents a nosedive of 18.8% compared to revenue of £627.1million in the 2018/19 fiscal year. This is also the lowest figure the club has recorded since the 2014/15 fiscal year.
- Broadcasting revenue decreased from £241.2million to £140.2million, a drop of 42%. This was primarily attributed to an estimated £15.0m Premier League rebate due to broadcasters, broadcast schedule changes to the 2019/20 football season, non-participation in the UEFA Champions League, and the impact of playing two fewer Premier League away games.
- Due to the impact of postponement of the Round of 16 Europa League home match and closure of non-match day operations in mid-March which saw Old Trafford shut down, matchday revenue decreased to £89.8million, a drop of 19%.
- However, despite the losses, United’s commercial revenues remained resilient, posting an increase of 1.4% to £279m in the previous year.
Manchester United’s Executive Vice-Chairman Ed Woodward said, “Our focus remains on protecting the health of our colleagues, fans, and community while adapting to the significant economic ramifications of the pandemic.
“Within that context, our top priority is to get fans back into the stadium safely and as soon as possible.”