Broadcast revenue helped Manchester United offset financial losses brought about by COVID-19
According to the BBC, Manchester United have been able to offset the financial losses they have experienced due to COVID-19 thanks to the passive influx brought in through broadcast revenue.
The pandemic has caused a widespread financial setback in the sport. The lack of fans for a whole stadium has taken its toll when it comes to our finances. Thankfully while one source dried up, another made up for it.
In the 12 months to 30 June, United received £254.8m from broadcasters. This represents an incredible 81.7% increase on the previous year’s £140.2m. Meanwhile, matchday revenue has hit rock bottom from £89.8m to £7.1m. Given that there were no fans in the stadium, that does not come as a surprise.
The departing Ed Woodward reveals his confidence in United’s model and believes the club is well placed to recover from the recent problems. He went on to add that it was thanks to the club’s robust model that signings such as Jadon Sancho, Raphael Varane and Cristiano Ronaldo was made possible.
“While the financial impact from the pandemic is visible, our continued underlying strength is also clear to see and everyone associated with the club can be proud of the resilience we have shown through these most testing of times.”
Woodward goes on to add that the signings represent United’s commitment to delivering on the pitch and the faith they have in Ole Gunnar Solskjaer by providing him with the tools he needs to succeed.
“These signings have demonstrated our continued ability to attract some of the world’s best footballers to Old Trafford, and our firm commitment to helping Ole deliver success on the pitch.”
Money talks!
United’s total revenues for the year until June dropped from £509m to £494.1m. The club reported a net loss of £92.2m for the period compared to £23.2m in 2020. According to the report, it was largely down to a £66.6m tax charge.
The Red Devils suffered a £70m drop in expected revenue last year as a direct result of the pandemic. Matters however appear to be improving.
More Manchester United News
- Ed Woodward backs Ole Gunnar Solskjaer to stay at the job despite sack calls
- Dimitar Berbatov accuses Manchester United of buying Donny van de Beek just to please fans
- Transfer News: Manchester United face Real Madrid comeptition for RB Leipzig attacker Dani Olmo
Fans are back in attendance and the world is slowly yet surely inching towards normalcy. While it may be some time before that is truly the case, Meanwhile it is good to see that our business model can hold up amidst adversity.
