MANCHESTER UNITED’S debt has risen by more than £137million, new financial figures released today revealed.
The rise from £247.2m to a whopping £384.5m is an increase of 55.5 per cent and highlights the reality of the club’s struggles.
The new financial figures released by Manchester United do not make pretty reading for Ed Woodward and the Glazer familyCredit: Getty – Contributor
The big spending on recruiting new players – an initial £145m on Harry Maguire, Daniel James and Aaron Wan-Bissaka – is a major reason for the soaring debt.
For the first quarter of 2019/20, revenue increased marginally to £135.4m, up £400,000 from the same period last year.
And the financial statement covering July 1 to September 30 of this year also showed commercial revenue up 5.9 per cent to £80.4m.
However, United are expecting 2020 annual revenue to drop by £67m to around £560m come the end of the season.
And a large part of that dramatic fall is due to the club’s failure to qualify for the Champions League this term, instead settling for a place in the Europa League.
That failure to reach Europe’s elite club competition is also a significant factor in the wage bill at Old Trafford dropping 8.8 per cent.
And another consequence for no Champions League football is a £9.9m fall in broadcasting revenue.
United’s executive vice-chairman Ed Woodward said: “We have a clear vision in terms of football philosophy and recruitment.
“The significant investments that we have made in recent years in areas such as transfers, recruitment infrastructure, analytics and our academy are already beginning to bear fruit.
“We are very proud to be shortly approaching a milestone 4,000th game featuring an academy player, and we are particularly optimistic regarding the considerable young talent currently coming through.
“Our ultimate goal is to win trophies by playing exciting football with a team that fuses graduates from our academy with world-class acquisitions.”
‘ED DEADWOOD’
Unsurprisingly, the news and comments did not go down well with United fans on Twitter as they raged at the Glazer family and Woodward, especially when it was announced that shareholders would be paid a dividend of 7p per share in January despite the mounting struggles.
One wrote: “Debt up, commercial revenue up – playing performance down- success on the pitch down.
“Club is a joke yet people still believe The Glazers and Woodward are committed to winning trophies. Sad state of affairs at Merchandise Utd #GlazersOut #WoodwardOut”
Another said: “Debt before the Glazers – £0. Debt last year with the Glazers – £511m. Debt THIS year with the Glazers – £524m. Parasites. #GlazersOut #WoodwardOut”
A third added: “One of the most eye-catching points on the balance sheet is the increase of net debt, from £247.2million to £384.5million, a rise of 55.5 per cent – ED DEADWOOD.
“U should be giving a clear explanation on this. Not bulls****ing the fans that we have a clear VISION.”
And a final user fumed: “Rinse and repeat. Same news with the Glazers – our debt rises whilst their pockets get heavier. It’s boring me to tears – just get the f*** out of our club.”
United’s on-field fortunes have improved in recent weeks after pressure had been growing on manager Ole Gunnar Solskjaer.
The team have won five of their last six matches in all competitions, and prior to that claimed a 1-1 draw at league leaders Liverpool.
But they remain seventh in the Premier League, nine points adrift of the qualification places for the Champions League.
While a top-four finish is looking increasingly unlikely, going all the way in the Europa League and lifting the trophy in Gdansk in May would provide an alternative route to the top table again via the back door.
Source: Soccer - thesun.co.uk
