Manchester United has accessed a £60m draw-down of their available £200m credit line, confirmed they did so due to Coronavirus.
The club has confirmed to have done so to cover a soaring net debt of £455.5m. United has also announced a 2.6% growth in total revenue in the last three months of 2020. The club accessed the credit as a result of the coronavirus pandemic impact on their revenue.
According to the club’s executive vice-chairman, Ed Woodward, broadcasting revenues led to a 68% increase. The broadcasting revenue increased to £108.7m, a figure helped mightily by United’s return to the Champions League.
“Demand for live football remains strong,” Woodward said.
On Covid-19 impact, Woodward termed it as a “once-in-a-century level crisis” that “tested our club’s resilience and values.” He further discussed the potential return of supporters to Old Trafford.
“We are seeing some positive examples around the world of live events with reduced capacity crowds with social distancing,” Woodward said.
“The successful rapid rollout of vaccines and falling rates of infections in the UK makes us optimistic about the government’s road map out of the lockdown. Including plans for the gradual reopening of sports stadiums with spectators, beginning this spring. Initially, this will be with limits on capacity, but we’re hopeful of crowds ramping back up to full capacity next season,” he added.
Cliff Baty, Manchester United’s chief financial officer too confirmed the club’s net debt of £455.5m. An increase of £64.3m over the prior year as a result of lost matchday revenue.
“We are well-positioned to weather the current uncertainty and optimistic for the future,” Baty said.
“The increase resulted in “a drawing-down of £60m of our available £200m credit line during the quarter”, Baty confirmed.
Despite the Red Devils title challenge fading, Woodward is optimistic about the club’s competitive status across all leagues. United is facing AC Milan in Europa League round 16 knock-out stage and lies 2nd in the English Premier League.
Also, Manchester United has struggled with injuries in their midfield. The likes of Scott MC Tominaiy and Edinson Cavani on and off the pitch. Paul Pogba too has struggled to shade off his injuries rendering Ole midfield incomplete.