Manchester United came out with the quarterly results that has shown some of the impact made by the coronavirus pandemic. The debt levels of the club have increased a whopping 42% compared to last year and it now stands at £429.1 million. The Red Devils have cited the substantial movements in the currency exchange rates as a key factor.
Apart from the massive increase in debt, United also have to contend with a substantial drop in revenues, which stands at £123.7 million – a drop of 18.7%. The club are also setting up different provisions for returning funds to television broadcasters as a result of live games being taken off the schedule.
“Operationally, the impact of the pandemic and measures to prevent further spread continues to disrupt its businesses in a number of ways, most significantly in Broadcasting and Matchday operations,” said Ed Woodward, according to Goal.com.
The pandemic has caused a lot of havoc to the football industry. Almost every facet of the game is expected to suffer significant downturns in the immediate to the foreseeable future. There has been a substantial drop in player’s transfer values and match-day income might be non-existent for the remainder of the season. In the long run, the commercial activities and revenues of the club could also be significantly hurt.
At this juncture, the rising debt levels are a worry and it is unlikely that the Glazers may do something about the situation.