Manchester United’s net debt currently stands at £419.1million, down from £474.4m last year, to the delight of outgoing executive vice-chairman Ed Woodward
Manchester United’s net debt has fallen by more than £50million in their annual financial results, released today.
United’s figures showed the club’s net debt currently stands at £419.1million, down from £474.4m last year.
Although United made a net loss of £92.2m, that was understood to be largely down to the accounting impact of a £66.6m non-cash tax charge.
The club’s wage bill was up 13.6 percent to £322.6m, largely due to Champions League qualification, while total revenue for the year was £494.1m.
United reported an operating loss of £36.9m, a reflection of the underlying impact of the pandemic on the club’s financial resources.
The decrease in United’s net debt reflected increased cash from season ticket revenues, along with favourable exchange rates and the increased strength of Sterling.
United’s matchday revenue was down 92.1 percent to £7.1m for the year, compared to £89.8m the year before.
That was because 33 matches before United’s final home game were played behind closed doors, compared to 23 games at Old Trafford with fans allowed in the year before.
United executive vice-chairman Ed Woodward said: “It has been an exciting start to the season at Old Trafford, with capacity crowds in attendance for the first time in almost 18 months.
“We were delighted to welcome back Cristiano Ronaldo to the club, along with Raphael Varane, Jadon Sancho and Tom Heaton, to further reinforce the progress that our first team has been making under Ole.
“This was made possible by the strength of our operating model, with sustained investment in the team underpinned by robust commercial revenues.
“Everyone associated with Manchester United can be proud of the resilience we have shown through the challenges created by the pandemic and we look forward to the rest of the season and beyond with great optimism.”
United are reeling from Tuesday’s shock 2-1 loss at Young Boys in their Champions League opener, but they sit top of the Premier League and Woodward is sure Ole Gunnar Solskjaer’s side are on the right track.
“We have been clear in our strategy to build a squad with a blend of top-class recruits and homegrown talent, comprising a balance of youth and experience, with the aim of winning trophies and playing attacking football the Manchester United way,” Woodward will tell investors on a call on Friday afternoon.
“As part of this, we have continued to strengthen our recruitment and scouting processes and we have also increased our investment in the academy to ensure that this success is sustainable.
“While squad-building is a constant process, we are more confident than ever that we are on the right track.”