Manchester United debt stands close to £500m despite increase in revenue after Covid

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Manchester United stadium Old TRafford Credit: PA Images
Manchester United stadium Old TRafford Credit: PA Images

Manchester United reported an almost 30% increase in revenue for the third quarter of 2022 compared to the same period last year.

The Red Devils’ total revenue for the three months ending March 31 of this year was £152.8million, up 29.2% from £118.3m in the corresponding quarter.

The club earned an additional £34.1m in matchday revenue in this period, with the Covid-19 pandemic having limited matchday revenue to £1.6m in the third quarter of 2021.

Overall there was an operating loss of £21.8m for the third quarter, compared to £21.6m 12 months ago, with broadcast revenue down by 12% to £51.5m.

The club’s net debt was £495.7m, up 11.8% on 12 months ago.

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The results stated that a ‘semi-annual cash dividend’ equating to nine cents per share would be paid to shareholders on June 24.

The club’s chief executive Richard Arnold admitted it had been a “disappointing” season on the pitch in a statement accompanying the financial results, with United missing out on Champions League qualification by finishing sixth in the Premier League.

“Work is well under way to address this, led by our football director, John Murtough and our new manager, Erik ten Hag,” Arnold said.

“Resilience and high standards are core values for Manchester United, and we are determined to achieve better results next season and beyond. Faith in youth is another key tenet of the club and the continued success of our academy gives us confidence in the future.”

Arnold’s statement also touched on major developments in the game, such as the introduction of more stringent regulations on agents being developed by FIFA, new UEFA financial sustainability regulations capping squad costs at 70 per cent of turnover and Champions League expansion from 2024.

“Overall, these changes demonstrate a welcome trend towards stronger governance and greater financial sustainability in European football,” he said.

The new-look Champions League will grant an extra place to each of the two countries with the best performance record in Europe in the previous season. In four of the past five seasons, England would have benefited from one of those places.

Arnold said the recovery of the club’s financial position after the impact of the pandemic reflected “the enduring strength of our commercial operations, which in turn support our ability to continue to invest in the club”.

The article Manchester United debt stands close to £500m despite increase in revenue after Covid appeared first on Football365.com.

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