Finance

Losses continue to rise despite ‘robust’ results at Man Utd

Manchester United’s losses grew to more than £90m during their latest financial year as the Covid-19 pandemic continued to impact the club’s finances.

The Old Trafford side have reported losses for the 12 months to the end of June 2021 of £92.2m, compared to losses of £23.2m they posted for the same period to the end of June 2020.

The Premier League club’s total revenue also dipped from £509m to £494.1m while its adjusted EBITDA went from £132.1m to £95.1m.

READ MORE: Manchester United post losses of more than £20m in first three months of 2021 as Covid-19 restrictions continue

Manchester United have also confirmed their total revenue for their fourth quarter was £94m, a rise from £81.5m, while their losses almost doubled from £36.5m to £107.7m.

Executive vice chairman Ed Woodward said: “It has been an exciting start to the season at Old Trafford, with capacity crowds in attendance for the first time in almost 18 months.

“We were delighted to welcome back Cristiano Ronaldo to the club, along with Raphael Varane, Jadon Sancho and Tom Heaton, to further reinforce the progress that our first team has been making under Ole.

“This was made possible by the strength of our operating model, with sustained investment in the team underpinned by robust commercial revenues.

“Everyone associated with Manchester United can be proud of the resilience we have shown through the challenges created by the pandemic and we look forward to the rest of the season and beyond with great optimism.”

The club’s commercial revenue fell in the year from £279m to £232.2m but broadcasting revenue increased from £140.2m to £254.8m.

However matchday revenue plummeted from £89.8m to £7.1m.

They also posted an operating loss of £36.9m, compared to a profit of £5.2m in the prior year.

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A statement released with the results said: “The ongoing pandemic and measures to prevent further spread continued to disrupt our businesses for the year ended 30 June 2021, most significantly in matchday and commercial operations.

“The Old Trafford Stadium, Museum and Stadium Tour operations remained closed to visitors throughout the financial year until part way into the fourth fiscal quarter. In line with Government guidelines, and with a variety of safety measures and protocols in place, including reduced fan capacity, Old Trafford Stadium welcomed back 10,000 supporters for the final home match of the season.

“Commencement of playing the 2020/21 Premier league fixtures was delayed until 19 September 2020, due to the deferred completion of the 2019/20 season.

“2020/21 matches were played over a more condensed period with most of the current season shortfall being played in the third and fourth quarters.

“During fiscal 2021, thirty-three home matches across all competitions were played behind closed doors, plus one home Premier League fixture, which was played with a significantly reduced fan capacity.

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“This is compared with a total of 23 home matches with fans in attendance and one home match played behind closed doors during the prior year, creating a significant shortfall in matchday revenues.

“From a commercial revenue standpoint, the first team’s pre-season tour, scheduled for the start of fiscal 2021, had to be cancelled due to Covid-19 related travel restrictions, sponsorship revenue was further impacted by Covid-19 related variations and the Old Trafford Megastore was closed for parts of the year due to Government-imposed restrictions.

“The matchday and commercial revenue shortfalls have been largely offset by an increase in Broadcasting revenues, due to the men’s first team’s participation in the UEFA Champions League, strong performance in both the Premier League and the UEFA Europa League, and the impact of completing the 2019/20 domestic and UEFA competitions during the current first fiscal quarter.

“Whilst the majority of remaining UK Government-imposed restrictions have been lifted subsequent to the end of fiscal 2021 and Old Trafford stadium has welcomed back fans at full capacity, the nature of the ongoing pandemic may result in government restrictions being re-imposed in the future.

“Given ongoing uncertainty due to the Covid-19 pandemic, the company is not providing revenue or adjusted EBITDA guidance for fiscal 2022 at this time.”

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