MANCHESTER UNITED lost a staggering £70million income in just three months because of the coronavirus crisis.
The Old Trafford outfit’s fourth quarter results show the impact of the pandemic on world football’s biggest money-making machine.
Man Utd’s debt soared by 133 per cent to £474m after the 2019-20 seasonCredit: Getty – Contributor
United executive vice-chairman Ed Woodward conceded the club had felt the ‘significant economic ramifications of the pandemic’.
He added: “Within that context, our top priority is to get fans back into the stadium safely and as soon as possible.”
In what was the first public nod to the furore caused by United’s involvement in drafting the Project big Picture proposals and talks about a breakaway European Super League, Woodward revealed all.
The United chief 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.”
The latest financial figures, up to the end of June, lay bare the cost of the virus after United took up a £140m loan from Bank of America in May.
With no games in April and May because of the shutdown and only four matches played in June, broadcast income for the quarter fell by more than £25m from the corresponding period in 2019.
United also paid the price for being out of the Champions League last term, with their total broadcast revenues for the year to the end of June down more than £100m, from £241.2m to £140.2m.
Overall, revenues fell by £118.1m for the 12 month period, down to £509m from £627.1m in 2019, with £49.9m of that figure in the last quarter of the financial year.
Matchday income fell £21m over the entire year, to £89.8m, and £18.3m in the final quarter, to just £5.5m.
And while commercial revenue went up by £3.9m over the 12 months, it fell by £7.3m in the final three months as Covid-19 raged.
In a statement to investors, United pointed to the acquisitions of Edinson Cavani, Amad Diallo, Facundo Pellistri, Alex Telles and Donny van de Beek in the summer transfer windows.
There were also new contracts signed by Dean Henderson, Nemanja Matic, Scott McTominay and Brandon Williams.
The club also noted it had landed two US World Cup-winning women stars, Tobin Heath and Christen Press plus hailing ‘eight now global partnerships’ and other financial agreements.
Woodward added: “ On the pitch, we have strengthened the team over the summer and we remain committed to our objective of winning trophies, playing entertaining, attacking football with a blend of Academy graduates and high-quality recruits.”
Speaking to the club’s financial investors on a conference call, Woodward described 2019-20 as ‘one of the most extraordinary and challenging seasons in recent history’ and insisted he was ‘proud’ of United’s response.
However, he warned: “There are still big challenges and uncertainties ahead as the Coronavirus pandemic continues to disrupt our way of life across the globe.
“This disruption is clear to see in the financial results. We expect the impact to remain visible for quite some time to come.“
Tuesday night’s Champions League win at PSG has helped change the United mood that was close to despair after their 6-1 mauling by Spurs before the international break.
Woodward added: “On the field, we will never be satisfied at Manchester United unless we are winning trophies.
“While there is more hard work ahead and the path is not always smooth, we are making progress.
Woodward has had his say on the ‘challenging’ 2019-20Credit: PA:Press Association
“We have a clear strategy under Ole (Gunnar Solskjaer) to build a successful, committed team, with a core of home-grown talent blended with high-quality recruits, that plays fast flowing, attacking football.
“The recruits underscore our continued commitment to strengthening the squad and take our net investment in new players since summer 2019 to over £200m – more, I believe, than any other major European club over that time period.
“The bottom line is we are investing and will continue to invest to back the manager.”
Woodward also admitted the importance of the return of fans to Old Trafford and other stadiums.
He said: “While we recognize that public health must always be the priority, what is needed is consistency of approach.
“If people are allowed to sit in a plane for hours, or in the cinema, or even watch football in a cinema why not outside in a stadium environment which is professionally managed and controlled?
“If indoor concerts are allowed, why should outdoor, socially-distanced football fans be treated differently?
“Fans are the bedrock of this game and some of the inconsistencies out there are frustrating for them and for the clubs.”
Ole Gunnar Solskjaer reacts after Man Utd beat PSG 2-1 in the Champions League
Source: Soccer - thesun.co.uk
