Manchester United Reported Crisis because of Corona Virus Pandemic

DBasia.news – The corona virus pandemic has a significant impact on the football sector, especially the club’s financial problems. One of the English giants such as Manchester United was affected.

Manchester United CEO Ed Woodward announced their financial results for the three months ended at the end of March. The results were quite surprising. The debt of the Red Devils directed by Ole Gunnar Solskjaer swelled.

Man United’s debt swelled from 127.4 million pounds to 429.1 million pounds. That happened because there was no income from ticket sales, merchandise, television broadcasting rights from football matches. Changes in currency exchange rates from pounds to US dollars also affect it.

Revenue in the quarter-year Man United declined from £28.4 million to £123.7 million. The absence of match television broadcasting rights also caused a decrease of 27.8 million and 2.6 million pounds.

The only increase came from commercial increases from 2 million to 68.6 million pounds due to agreements with sponsors. Man United hopes to earn £20 million if the Premier League continues and ends later.

Ed Woodward also reminded of the potential for increasing debt and its influence on United’s finances if the Covid-19 pandemic continued.

“It reflects the partial impact of the pandemic on the club, while the greater impact will be in the current quarter and is likely to surpass,” Woodward said as quoted by the Guardian.

“There are still big challenges going forward, and for football as a whole, and it’s safe to say it won’t be ‘business as usual’ for some time to come.”

“We remain one of the most popular teams in the most widely followed global sport and have created a strong financial base with diverse revenue streams.”

“However, the impact of the pandemic is now widely felt throughout the football community, not only by the club but also by players, supporters, broadcasters, sponsors and many other shareholders.”

“We must realize that this crisis will not disappear overnight and that the world that emerges will be different from how it was before,” explained Woodward.

However Woodward also stressed that United will continue their long-term project in building a squad that involves young players. It was allegedly unchanged in the latest conditions.

“We remain very optimistic about the long-term prospects for the club and for our exciting young team once we have passed what is undoubtedly (as) one of the most special periods and examinations in the 142-year history of Manchester United’s founding,” concluded Woodward.

Although in a financial condition affected by Covid-19, Woodward also said that if United are still dividing their funds to help fight the corona virus.