Manchester United executive vice-chairman Ed Woodward said the club are having to adapt to “significant economic ramifications” of the coronavirus pandemic after they announced a severe hit to their revenue with net debt rising by 133 per cent.
The club released their quarter four financial results on Wednesday which highlighted the full impact the pandemic has had. The report showed a revenue drop of 19% to £509 million ($664m) and a loss of £23m ($30m) compared to a £19m ($25m) profit made last year.
United estimate that Covid-19 has cost them £70m ($91m) in revenue, with the lack of Old Trafford matchdays and the closure of the club shop contributing a large chunk of that sum. While their principal debt remains the same, the club’s net debt is up 133% to £474m ($618m).
It is understood the drastic rise in that figure is due to a decline in cash income due to the coronavirus pandemic and money spent on player transfers. Woodward said: “Our focus remains on protecting the health of our colleagues, fans and community while adapting to the significant economic ramifications of the pandemic