Manchester United suffer shocking losses due to COVID-19 crisis
- Manchester United's financial reports indicate that the club is going through a testing phase.
- Ed Woodward wants Manchester United's EPL season to be completed by the end of August.
In a statement released to the press, Manchester United has revealed that the aftermath of the coronavirus pandemic has left the club in a state of shock.
With revenues dwindling and debts piling up, Manchester United's financial condition is in a dire state.
Manchester United chief executive sets deadline for season end
Manchester United's controversial head honcho Ed Woodward also spoke to the press earlier today. In addition to revealing details about Manchester United's financial troubles, Woodward also expressed his desire to ensure that the 2019-20 EPL season is completed by the end of August.
This would the next season to start on time and in turn alleviate some of Manchester United's monetary concerns.
Woodward also said that Manchester United is facing the most testing time in long and storied history. The pandemic has seen entire economies come to a complete standstill, and a consequent domino effect has seen many of the smaller football clubs disappear into oblivion.
Manchester United still earns substantial amounts of revenue from commercial marketing and sponsorship deals and is in no immediate dangers of liquidation.
However, the chief executive acknowledged that the economic impact of the crisis on the club has left scars that will take years to heal, even for a club as powerful as Manchester United.
The Premier League continues to the only viable solution to initiate Project Restart: empty stadiums. Manchester United earned £29.1 million in matchday revenues in the previous quarter. While this does not form a large chunk of the club's sources of revenue, a complete absence of matchday revenue does impact the club's finances.
Manchester United also owes a rebate of £15 million to EPL broadcasters. The massive debt is largely due to the erratic changes in fixture schedules brought about by the EPL's shutdown.
While Manchester United claims to have £90.3 million in its cash reserves and an additional £150 million under its revolving credit facility, the club must look to new opportunities to create income to ensure its prosperity in the long run.
The report also mentioned that Manchester United's debt shot up to an incredible £429.1 million, which translates to an increase of £127.4 million from the previous year.
These stunning figures may only prove to be the tip of a massive financial iceberg that is set to come crashing down on the EPL ship in the coming months.
Manchester United may have the resources to steady the ship and defy the ongoing financial crisis, but football as a whole is set to go through a turbulent phase in the coming months.