Manchester United lose £70m in revenue due to effects of coronavirus
Manchester United have announced a loss of £70m in annual revenue due to the effects of the coronavirus pandemic.
United’s revenue shrank by almost 20 per cent in the year ending June 2020 compared to the previous financial year as the impact of the pandemic affected the club on a number of fronts.
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The 2019/20 total revenue represents the lowest figure United have posted since the 2014/15 financial year, when it was £395.2m.
The club posted total revenue of £509m for 2019/20, compared to record revenues of £627.1m in 2018/19, representing a drop of 18.8 per cent.
Revenue had been projected to drop to between £560m and £580m this year because of the club not being involved in the Champions League, but they withdrew the forecast figure when they published their third-quarter results in May because of the impact of the pandemic.
Broadcasting revenues fell from £241.2m to £140.2m, a drop of 41.9 per cent, while their matchday revenue fell 19 per cent to £89.8m.
Net debt more than doubled from the previous year to £474.1m, which the club said reflected the impact of deferred sponsorship payments of £80m, the loss of advance matchday revenue for 2020/21 which would typically be in excess of £50m ahead of a Champions League season and an increase in player investment.
Exceptional costs for the prior year were £19.6m, which relate to the compensation paid to former manager Jose Mourinho and members of the coaching staff.
The club said they would not issue revenue guidance for the 2020-21 financial year due to the “ongoing uncertainty” caused by the pandemic.
Commenting on Project Big Picture and potential European Super League proposals, executive vice-chairman Ed Woodward said: “We are also committed to playing a constructive role in helping the wider football pyramid through this period of adversity, while exploring options for making 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 forward that process in a timely manner.”
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