The coronavirus has had a devastating impact on the world of sports. From a financial perspective, there are simply no ways of glamourising the bleak realities that organisations have faced.
Regardless of their size or stature, football clubs have taken hits. Huge hits.
Manchester United are set to reveal a financial report on Friday, showcasing the full effects that COVID-19 have had on their numbers.
Journalist Mike Keegan has shared some of the results already on Twitter, and they make for rather grim reading. The club have announced an operating loss of £27.1m, with commercial revenue down 25.7% and matchday revenue down 92.3%. In total, United’s revenue has fallen by 19.5%.
Without fans being able to attend games, it was predicted over summer that the Red Devils were missing out on around £3-4m per matchday. With England still in lockdown, there is little hope for spectators to return this calendar year.
Keegan also revealed that United’s net debt is now £440.6m, up from from £384.5m. The Mail correspondent stated that the ‘club say the gross principal debt remains unchanged and that the increase is due to a £81.4m reduction in cash and cash equivalents at 30 September 2020 compared to 30 September 2019.’
Whilst the Red Devils are better equipped than others to survive the current pandemic, this by no means makes them immune to the financial hits being delivered across the country.
As per the MEN, the club are also faced with a rebate bill of £330million, split across the 20 Premier League clubs, with broadcasters demanding a part-refund for the behind-closed-doors product.