New York-listed Manchester United said on Wednesday its revenue for the year to June 30, 2020, fell 18.8% to £509 million as the company slumped to a net loss of £23.2 million compared to a profit of £18.9 million in the prior year.
The company’s executive vice chairman Ed Woodward said it was “adapting to the significant economic ramifications of the pandemic.”
Broadcasting revenue fell 41.9% to £140.2 million while matchday revenue fell 19% to £89.8 million.
Net debt rose 132.9% to £474.1 million for the year to June 30.
The company explained: “The increase in net debt is predominantly due to a £256.1 million reduction in cash and cash equivalents, which reflects the impact of deferred sponsorship payments (in excess of £80.0 million); loss of 2020/21 season matchday advance cash receipts (typically in excess of £50.0 million ahead of a Champions League season) with new seasonal facility sales currently on hold due to the uncertainties around fans returning to the stadium; and increased player investment in fiscal year 2020 (£56.4 million increase in net capital expenditure on intangible assets compared to the prior year).”
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.
“Within that context, our top priority is to get fans back into the stadium safely and as soon as possible.
“We are also committed to playing a constructive role in helping the wider football pyramid through this period of adversity, while exploring options for making the English game stronger and more sustainable in the long-term.
“This requires strategic vision and leadership from all stakeholders, and we look forward to helping drive forward that process in a timely manner.
“On the pitch, we have strengthened the team over the summer and we remain committed to our objective of winning trophies, playing entertaining, attacking football with a blend of Academy graduates and high-quality recruits, while carefully managing our resources to protect the long-term resilience of the club.”