Manchester United on Wednesday issued its unudited monetary statements for 2019/20, in which profits dropped $154 million and net debt increased by $352 million compared to the previous year.
However, Satan is in the details, and more detailed research shows that Manchester United has also reduced its operating prices by $105 million in the past 12 months. The net effect on profit before tax 2018/19 of $36 million on a 2019/20 loss of $27 million.
Unsurprisingly, Covid-19’s effect on Manchester United’s monetary effects has been significant; However, it should be noted that the club’s earnings forecast for 2019/20 projects a profit diversity of $730 million to $750 million, a decrease of $48 million. at $68 million of the figure published in 2018/19. While Covid-19 was unexpected, participation in the European League instead of the Champions League was not.
Here is a detailed review of Manchester United’s monetary effects for 2019/20. (Change $1. 30 in pounds)
Revenue on game day dropped $27 million, with 85% between April and June.
Transmitted with $132 million; In their 3rd quarter results, Manchester United estimated that in the absence of the Champions League it will charge $100 million. It is also recalled that several matches have been postponed in 2020/21 and that the revenue generated will appear in the first quarter of 2021.
Sponsorship increased to $5 million, before Covid-19 arrived, was even higher. The effects of the third quarter showed an accumulation of $15 million. A complement to this category is that Manchester United have extended the blouse agreement with GM until December 2021, some another six months.
Gain’s contribution to player sales (not included in revenue) fell by millions of dollars, from $34 million to $23 million.
Operating expenses decreased to $105 million, 42 million of the relief learned in the fourth quarter. In the first quarter, prices fell to $63 million.
Staff costs that benefit contributed the maximum to relief on operating expenses: $63 million of $105 million.
The exceptional expenses recorded in 2018/19 are a one-off charge: the dismissal of Jose Mourinho and his entourage Manchester United of around $26 million.
Depreciation remained largely unchanged at $165 million at 19/20 compared to $169 million last year.
Net financing prices rose from $29 million to $33 million.
Things changed, but the dividend payment to Glazer’s family circle remained the same at $30 million.
There was a $63 million profit-to-loss change during the 12 months. A tax-free profit of $36 million in 2018/19 has become a loss of $27 million in 2019/20. The estimate of the effect of Covid-19 is an art er than a science However, even without the chaos caused by the pandemic, it is very likely that Manchester United’s profits would have been lower than in 2018/19.
Highest net debt at 132% – $266 million to $618 million – more than $100 million in sponsorship bills were deferred; Advance sale of $65 million in 2020/21 tickets; investment in new players increased by $73 million compared to last year.
To paraphrase Manchester United’s press release, given the uncertainty caused by the Covid-19 pandemic, there will be no long-term profit forecasts or EBITDA by 2021.
What effect will this have on the monetary fair play of Manchester United and UEFA?The undeniable answer is not at all. The effects of Manchester United will be among the most powerful despite the loss once the full monetary scenario in Europe is clarified.
When asked in March this year about Covid-19 and its effect on the regulation of monetary fair play, UEFA replied: “With regard to supervision activity in relation to monetary fair play, it should be noted that the force majeure provision is already provided for in the CL Regulation
I have been a football announcer and announcer for over 25 years and have followed the game of the world for as long as I can remember. I was a football analyst for Fox Soccer
I have been a football announcer and announcer for over 25 years and have followed the game of the world for as long as I can remember. I was a football analyst for Fox Soccer Report and Fox Soccer News from 2001 to 2013.