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MAN U-NIGHTMARE

Man Utd debt soars by £127.4m to £429m over last year as they feel devastating effects of coronavirus crisis

MANCHESTER UNITED’S debt has risen by £127.4million to £429.1million.

The huge hit comes in the wake of the club failing to reach the Champions League and the hit they have taken due to the coronavirus lockdown.

 The coronavirus pandemic has had a huge effect on United's finances
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The coronavirus pandemic has had a huge effect on United's financesCredit: PA:Press Association

There has also been movements in the pound to dollar exchange rates which has affected the club.

The numbers are still huge for a club that has been in the red ever since the Glazer takeover plunged the club into £525 million of debt.

The subsequent servicing of that debt has cost the hundreds of millions since they took charge in 2003.

The club today released their quarterly figures up to March 31st which is nearly three weeks after football was suspended.

While the full impact will not be felt until the next set of figures, the loss of broadcast revenue has clearly been a major factor.


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A United statement explained: "Broadcasting revenue for the quarter was £26.0 million, a decrease of £27.8 million, or 51.7%, over the prior year quarter, primarily due to an estimated £15.0m Premier League rebate due to broadcasters, following delay and 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.

"Matchday revenue for the quarter was £29.1 million, a decrease of £2.6 million, or 8.2%, over the prior year quarter, including the impact of postponement of the Round of 16 Europa League home match and closure of non-match day operations in mid-March."

Despite this United remain in a healthy financial state announcing that they have plenty of money in the bank to help them through this difficult period for football.

The club has £90.3m of cash balances plus access to an additional £150m available under what they refer to as a revolving credit facility.

The Club’s Executive Vice Chairman remained positive about the team’s ability to finish the season well when Project Restart gets underway on the back of an 11 game unbeaten run before lockdown.

Our focus remains on the health and well-being of our colleagues, fans and partners around the world.

Ed Woodward

He did point out, however, that their prime concern at the moment has been the impact of the coronavirus and how they have been able to assist the local community.

Woodward said: “Our focus remains on the health and well-being of our colleagues, fans and partners around the world and we are extremely proud of how those connected to the club have responded during this crisis.

"Since the start of the pandemic, Manchester United and our Foundation have provided assistance to hospitals, charities and schools in our communities, as well as support for frontline workers and vulnerable fans.

 The Red Devils had been in a rich vein of form prior to lockdown
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The Red Devils had been in a rich vein of form prior to lockdownCredit: Reuters

“These actions reflect our core values as a club and the resilience through adversity that we have demonstrated many times throughout our long history and will do so again to weather these current challenges.

“In that spirit, we look forward to the team safely returning to the pitch and building on the exciting momentum that Ole and the players had previously achieved, while taking all necessary steps to protect public health.

"Our thoughts remain with all those affected during this unprecedented time.”

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