English top-flight club, Manchester United’s net debt has increased to £455.5m, a £64.2m (16.4%) increase compared to last year as the club reveals its latest reports for the second quarter of fiscal 2021.
The English club also revealed an operating profit of £48.5m a positive increment of £12m (32.9%) compared to that of last year as the top-flight club continue to adjust and adapt to the Covid-19 pandemic. The Old Trafford Stadium, Museum and Stadium Tour operations remain closed and also the Old Trafford based Megastore was closed on 31 December 2020 and remains closed due to the pandemic.
Key highlights include:
- The club posted a total revenue of £172.8m, a profit of £4.4m (2.6%) compared to the £168.4m made at the same period last year.
- United’s commercial revenue for the quarter was £62.6m with a drop of £8.0m (11.3%) compared to that of last year.
- Sponsorship revenue was also down to £37.8m, a decrease of £7.3m (16.2%) compared to that of last year.
- Retail, Merchandising, Apparel & Product Licensing revenue also dipped to £24.8 million, a decrease of £0.7 million, (2.7%) compared to that of last year.
- Broadcasting revenue for the quarter was £108.7m which is an increase of £44.0m (68%) compared to the £64.7m made at the same period last year.
- The revenue increase this quarter due to the participation of United in the UEFA Champions League compared to last year when they were in the Europa League.
- United ended the quarter with net debt of £455.5m, an increase of £64.2m (16.4%) compared to a net debt of £391.3m last year.
Unsurprisingly, due to the effect of the pandemic, fans are restricted from entering the attending matches, matchday revenue fell drastically from £33.1m to £1.5m, a dip of £31.6m (95.5%) due to all matches being played behind closed doors compared to last year where nine home games were played with fans in attendance. However, the UK is expected to ease down lockdown measures in May which might see a return of fans to attend matches.
What they are saying
Manchester United Executive Vice Chairman, Ed Woodward said the following in the financial report:
- “As we approach a full year since our last game with fans at Old Trafford, we reflect on an extraordinarily challenging 12 months for football and society as a whole. The rapid rollout of vaccines in the UK and beyond gives us confidence that we are now on a path towards normality, including the return of fansto stadia. While the disruption to our operations remains significant, we are pleased by the tremendous resilience the club has demonstrated through the pandemic, underpinned by the dedication of our people and the strength of our commercial business. We have been reminded of the importance of football as a source of community, entertainment and pride to fans around the world, even as we have sorely missed them at Old Trafford. The progress made by Ole and the players this season is clear and our thriving Academy and Women’s team are also adding to the optimism we feel about the future on and off the pitch.”