Manchester United have published financial figures showing a net loss of £18.1m for the three months ending 31 March 2021 as the impact of the coronavirus pandemic continues to be felt.
United had actually posted a profit in their last set of quarterly accounts thanks to income being buoyed by participation in the Champions League group stage, but a return to the Europa League after Christmas and the continued suppression of other revenue streams means a loss this time.
Commercial revenue was down by 15% on the same three-month period in the previous year, while matchday revenue has remained almost non-existent as Old Trafford stayed closed to fans throughout the period in question – matchday revenue was down 94.5% on the previous year.
Broadcasting revenue actually went up from what it was for the same period in 2019/20. Football was suspended in March 2020 as the coronavirus outbreak first gripped Europe, while the 2020/21 schedule was squeezed and heavily congested to make up for a late start to the season, meaning United played considerably more matches in this quarter than a year earlier.
But while broadcasting revenue more than doubled, overall income for the period was £118.3m, down 4.4% on the same quarter from the previous season.
However, with account records for three quarters of the 2020/21 season now published, United are still in net profit overall, albeit running at a negligible operating loss before other factors are taken into consideration, highlighting the club’s financial robustness and resilience.
Net debt stands at £443.5m, a slight increase on the same period a year ago.
In his accompanying comments, executive vice-chairman Ed Woodward focused on United fans, which hardly seems a surprise given the way the club has had to beg supporters for forgiveness following the European super league scandal that rocked football in April.
Woodward called fans the ‘lifeblood of the game’ and spoke optimistically about returning to Old Trafford in greater numbers soon as coronavirus restrictions are lifted.
One of the biggest things United have been criticised for under the Glazer ownership model is ignoring fans, but Woodward made a point of highlighting that the club is now working on ‘significant initiatives to strengthen engagement’ with supporters.
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Source: 90min
