Pranav Nair
Manchester United borrow £60m as net debt increases to £455.5m
According to The Guardian, Manchester United have been forced to dip into their available £200m credit line owing to the crisis brought about by the coronavirus pandemic.
The Red Devils have borrowed £60m as the club’s net debt increased to an eye-watering £455.5m. But it is not all doom as the club saw an increase in revenue towards the end of 2020.
In fact, United saw a 2.6% growth in total revenue from £168.4m to £172.8m from October to December last year.
This improvement in revenue is due to a 68% rise in broadcasting revenues to £108.7m, a figure helped largely by United’s return to the Champions League.
Executive vice-chairman, Ed Woodward is aware of it and believes that the demand for live football is still high. He rightly admitted that the pandemic provided the club with a once in a lifetime challenge.
With vaccination drives on the rise and sporting events slowly admitting spectators back in, fans could yet return to Old Trafford in the near future.
While the prospect of fans’ return is close to none this season, next season could be different.
United’s revenue went down by 7.2% to £281.8m, with profit dropping by 6.9% to £33.8m. The total broadcasting revenue, however, rose to £156.3m, an increase of 60.1% compared to the corresponding period in 2019. Commercial revenue was however down 19.1%.
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Ole Gunnar Solskjaer recently admitted that the club will need to act responsibly given the constraints of finances. What impact this would have on United’s summer transfer activity remains to be seen.
