Despite Corona and Ronaldo .. Manchester United "on the right track" financially
Manchester United Football Club announced on Friday a decline in total revenues for the second financial year in a row, with the continuing repercussions of the Corona virus pandemic, but CEO Ed Woodward confirmed that the club is on the “right path” after attracting stars this summer, led by former Portuguese player Cristiano Ronaldo. Ronaldo.
The figures showed that total revenue for the financial year ending on June 30, which includes running a full season during the global health crisis, decreased by 2.9 percent to total revenue of 494.1 million pounds ($680 million), with revenue from match days declining by more than 90 percent.
In the last financial year, the club's revenue fell sharply from £627.1m to £509m, which includes the early months of the pandemic.
The epidemic had a significant impact on the local and international calendar, and the matches were held behind closed doors, which affected the revenues from match days.
Revenue from broadcast television helped cushion the financial blow on United, with the club making £254.8m, up more than 80 per cent, but matchday revenue down 92 per cent to just 7.1m.
Net losses amounted to 92.2 million pounds for this period compared to 23.2 million pounds in 2020, and this inflation is largely due to taxes, which amounted to 66.6 million.
Woodward, who will step down at the end of 2021, said on a call with investors that last year was "among the most challenging in Manchester United's history" but sounded optimistic about the future.
"While the financial impact of the pandemic is clear, our continuing core strength is clearly visible, and everyone associated with the club can be proud of the resilience we have shown during most of these times."
Woodward noted that global demand for watching matches remained very high, pointing to "strong" deals in broadcast rights domestically and internationally and the potential for growth in North American markets through streaming services, without hiding that "while we are confident in our strength, it is still clear Football is facing significant financial challenges stemming from years of inflation in wages and transfer fees, which have been exacerbated by the impact of the pandemic.
Woodward also said he was "more confident than ever" that Ole Gunnar Solskjaer's side are on the "right track" after United signed Ronaldo, Jadon Sancho and Raphael Varane in the summer transfer market.
"These signings demonstrate our ability to continue to attract some of the world's best footballers to Old Trafford, and our unwavering commitment to helping Ole achieve success on the pitch," he said.
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