In the first three months of 2020, Man Utd’s debt increased by 42% compared to the end of last year.
The newly released financial report showed that in the first three months of the year, Man Utd’s net debt increased by 155 million to 525 million USD, equivalent to 42%. The reason for the sharp increase in debt is the decline of money and cash equivalents, along with the adverse fluctuations of the exchange rate of the pound against the USD.
The Man Utd Q1 / 2020 report also includes damage during the last three weeks of March, the time games are suspended due to the pandemic. Under Covid-19, Man Utd adjusted its estimated revenue to between $ 685 and 710 million.
The report also said that the impact of the pandemic and the measures to prevent the spread will continue to disrupt business operations in many ways, in which the most serious impact is the revenue of TV copyright and Collecting match organization.
According to Chief Financial Officer Cliff Baty, the pandemic caused $ 28 million in damage to Man Utd as of March 31. This includes money expected to be returned to TV stations, losses associated with the match at Tottenham, the delay of a number of home games, the closure of the trading system and the museum.
Despite the sharp increase in debt, Man Utd still asserted that the club had enough potential and financial flexibility to overcome difficulties during the Covid-19 period. “Reds” currently own a cash balance of 110 million USD, not including the right to access 184 million as a credit overdraft loan.
Thanh Quy (follow Goal)