Manchester United's debt SOARS 133 per cent to £474.1M in a coronavirus-hit season after splashing out on players and losing a fortune in TV deals, ticket sales and sponsorship... but Glazers still take £20m out of club
* Manchester United paid out £20million in dividends to owners, the Glazer family
* Despite club's net debt skyrocketing from £203.6m 12 months ago to £474.1m
* Red Devils revealed annual figures which make for grim reading due to Covid-19
* Annual revenue has fallen off a cliff while net debt has more than doubled
Manchester United paid out £20million in dividends to their owners, the Glazer family, despite the club's net debt skyrocketing from £203.6m 12 months ago to £474.1m.
The Old Trafford club have announced their annual figures which, owing largely to the impact of the pandemic, make for grim reading.
Annual revenue has fallen off a cliff, from £627.1m to £509m, while net debt has more than doubled.
The principal debt, related to the Glazers' hugely controversial, leveraged takeover in 2005, remains the same. But the owners have drained more than £1billion out of the club in finance costs, dividends and interest — and that figure continues to rise.
The pandemic has seen matches played behind closed doors, hurting United more than most.
They rake in vast sums in matchday revenue, thanks to the size of Old Trafford and the huge corporate hospitality operation that surrounds each fixture.
Manchester United released their latest quarter financial results on Wednesday morning. Executive vice-chairman Ed Woodward was left to discuss club's debt rising by 133 per cent
On a conference call to discuss the figures, which included an annual loss of £23.2m, executive vice chairman Ed Woodward unsurprisingly hit out at the Government's ongoing reluctance to allow spectators to attend matches. The club even declined to post an estimate for this year's revenue — a telling move amid an uncertain background.
Woodward also said he was 'committed to exploring options' following United's key role in the controversial Project Big Picture plans.
The club, along with Liverpool, came up with proposals for a major power shift in the Premier League towards its Big Six clubs, in exchange for what was billed as a rescue package for the EFL.
Finances continue to take hits with more games this season played behind closed doors
The hugely contentious proposals were blown out of the water at a top-flight meeting last week, but Woodward vowed to press ahead. 'We are pleased that the Premier League have committed to work together on a plan for the future structures and financing of English football,' he said.
'Now it must deliver on that promise and we are committed to playing a leading role in pushing that process towards a successful outcome.'
On the subject of allowing fans back into grounds, Woodward added: 'If people are allowed to sit in a plane for hours, or in the cinema, or even watch football in a cinema, why not outside in a stadium environment which is professionally managed and controlled? If indoor concerts are allowed, why should outdoor, socially distanced football fans be treated differently?
'Fans are the bedrock of this game and some of the inconsistencies out there are frustrating for them and for the clubs.'
United have extended their expiring shirt sponsorship with Chevrolet by six months, which is expected to net them an extra £11m, but they say Covid-19 cost them £70m for the quarter alone.
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