Manchester United owe almost £1bn
According to recent data, Manchester United owes £969.6 million in total debt, including gross debt, bank borrowings, and unpaid transfer fees and related obligations.
On Thursday, the club revealed its second quarter financial figures through December 31.
Due to the ongoing “strategic review,” unlike past years, there was no investors’ call after the presentation.
The Premier League team can end up being sold as a result of this.
It is emphasized that the evaluation itself is not related to any short-term liquidity concerns, but rather is focused on how to meet the club’s long-term capital investment demands, notably for upgrades to Old Trafford and the club’s Carrington training facility.
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However the sum due to the club has increased.
The club owing £535.7 million as opposed to £477.1 million at the same time last year, despite the fact that the primary debt is still $650 million. This was due to a shift in the currency rate.
Moreover, £206.2 million has been deducted from a rolling credit facility, leaving £227.7 million in unpaid transfer costs. Although the club did have £31 million in cash or equivalents, the total amount is still just shy of $1 billion.
Nevertheless, it is emphasized that this has already turned for the better as a result of huge matchday revenues and outstanding season ticket sales – and they expect it to continue. BBC Sport has been informed that the data are proof of a “stretched” financial situation.
Moreover, in addition to reporting profits of £6.3 million for the quarter, United also disclosed that sponsorship revenue rose by 43.2% to £50.4 million from the previous quarter. This, according to the club, is a result of their training kit contract with Tezos as well as a “one-off sponsorship credit” that they have chosen not to disclose.
Erik ten Hag’s squad did not compete in the Champions League this year, therefore wages decreased by £20.4 million to £77.3 million, or 20.9%.
