Manchester United continues to face the financial brunt of the pandemic as the recent numbers released for the second quarter see the debt soaring and revenue taking a big hit. The debt has soared by 16.4% to £455.5 million. Meanwhile, the overall revenue has been reduced by 7.2 % to £281.8 million.
The only positive for the Red Devils has been the rise in broadcast revenue due to participation in the Champions League. It has been a mouth-watering 60.1% increasing in the broadcast revenue that currently stands at £156.3 million. United would have seen even better growth if they had progressed to the knockout rounds of the Champions League.
The absence of fans continues to create a big hole in United’s accounts. From the last campaign, there has been 94.2% drop in matchday revenue with the outlay standing at just £3.2 million. With fans unlikely to return this season, the matchday revenue will further dip when United releases the next statement in a few months’ time. United heavily relies on matchday revenue in the league since they have the biggest stadium in England behind Wembley Stadium.
The drop in revenue is likely to affect United’s transfer plans in the summer. They didn’t spend big last summer when Ole Gunnar Solskjaer sealed a place in the top four of the Premier League. United will be hoping that the effect of the pandemic pales down by the start of next season.
United currently sits second in the Premier League table, 14 points behind neighbours Manchester City. The Red Devils will have to finish in the top four to make sure that they play Champions League next season and get a good broadcast revenue. Since the UK government has insisted that fans could be returning to stadiums by June, United would be filling 75,000 capacity Old Trafford by the start of next season.