Sportsbiz
The impact of Covid-19 on
Manchester United’s finances has been revealed yesterday in the club’s latest
set of accounts for the three months to 31st March 2020.
Broadcasting and matchday
revenues were impacted due to the postponement of three matches: one away
Premier League match, one home Round of 16 Europa League match and one away FA
cup quarter-final match.
Those factors have seen
United’s matchday revenue fall by 8.2% to £29.1m and broadcasting revenues down
by over 55% to £26m on the same period 2019.
During the reporting period
the club’s Net Debt increased £127.4m to £429.1m, over the prior-year quarter,
due to an overall decrease in cash and cash equivalents and adverse movements
in the GBP:USD exchange rate.
As of 31 March 2020, the
club had £90.3m of cash balances together with access to an additional £150m
available under its revolving credit facility.
However, commercial revenue
for the quarter remained strong at £68.6m, an increase of £2m over the prior
year quarter.
Sponsorship revenue was
£44.7m, increasing £3.1m, or 7.5%, over the prior year quarter, primarily due
to new sponsorship deals.
Retail, Merchandising,
Apparel & Product Licensing revenue decreased £1.1m to £23.9m, in part due
to the closure of the Old Trafford Megastore in mid-March.
Commenting Executive Vice
Chairman, Ed 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.
“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.”
Manchester United has taken
a range of measures to support its communities in response to the COVID-19
pandemic, including donations to food banks and outreach to elderly and
disabled supporters.
In addition, the Manchester
United Foundation has committed over £1m to community initiatives, including
the supply of 60,000 meals for health workers in local hospitals and support
for schools and vulnerable children across Greater Manchester.
The club has also used its
media platforms to deliver public health messages and to support frontline
workers around the world.
Credit:
fcbusiness.co.uk
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