![\"\"](\"http:\/\/irishexaminerusa.com\/wp\/wp-content\/uploads\/2020\/10\/2.34017186.jpg\")
Manchester United\u2019s revenue shrank by almost 20 per cent in the last financial year and the impact of Covid-19 continues to bite, but executive vice-chairman Ed Woodward vowed to continue investing in search of silverware.<\/p>\nManchester United\u2019s revenue shrank by almost 20 per cent in the last financial year and the impact of Covid-19 continues to bite, but executive vice-chairman Ed Woodward vowed to continue investing in search of silverware.<\/p>\n
The Old Trafford giants provided a glimpse into the financial strain put on elite clubs by the coronavirus pandemic when announcing their accounts up until June 30, 2020.<\/p>\n
United posted total revenue of \u00a3509million for 2019-20, compared to record revenues of \u00a3627.1m in 2018-19 \u2013 a drop of 18.8 per cent and their lowest revenue figures since recording \u00a3395.2m in 2014-15.<\/p>\n
Net debt has soared 132.9 per cent from \u00a3203.6m to an eye-watering \u00a3474.1m and their accounts show a \u00a323.2m loss for the financial year, with coronavirus making a direct \u00a370m dent on the figures up until the end of June.<\/p>\n
Woodward said there are \u201cbig challenges and uncertainties ahead\u201d as he reflected on the accounts, but stressed that United continue to support Ole Gunnar Solskjaer in his attempts to make the side a major force on the pitch.<\/p>\n
\u201cWe will never be satisfied at Manchester United unless we are winning trophies,\u201d the executive vice-chairman said after a six-month shirt sponsorship extension with Chevrolet until the end of 2021 was announced.<\/p>\n
\u201cBut our third-place finish in the Premier League and strong cup runs last year showed that, while there is more hard work ahead and the path is not always smooth, we are making progress.<\/p>\n
\u201cWe have a clear strategy under Ole to build a successful, committed team, with a core of homegrown talent blended with high-quality recruits, that plays fast-flowing, attacking football.\u201d<\/p>\n
Woodward said the need to improve has to be balanced with recognition of \u201cthe extraordinarily challenging environment facing us and all football clubs at this time\u201d.<\/p>\n
Edinson Cavani, Donny van de Beek, Alex Telles and Facundo Pellistri were signed in the summer, with Amad Diallo to join in January, but United were unable to find a way to bring in England international Jadon Sancho.<\/p>\n
Borussia Dortmund wanted 120m euros (\u00a3107m) the for player and Woodward pointed out that no deal was done this summer for over 100m euros (\u00a389m) for the first time in five years.<\/p>\n
The United chief highlighted that their net investment in new players since the summer of 2019 was over 200m euros (\u00a3178.1m) \u2013 more than any other major European club \u2013 and added: \u201cThe bottom line is we are investing and will continue to invest to back our manager.\u201d<\/p>\n
However, there is a lot of work to do if United are to become a title-winning football team again and the financial situation does not make for particularly pretty reading.<\/p>\n
United had \u00a351.5m cash and \u00a3150m of credit available at the end of the financial year, but the \u00a3474.1m net debt is a particularly striking figure.<\/p>\n
The club say that reflected the impact of deferred sponsorship payments of \u00a380m, the loss of advance matchday revenue for 2020-21 which would typically be in excess of \u00a350m ahead of a Champions League season and an increase in player investment, while their principal debt remains unchanged.<\/p>\n
Their accounts show a \u00a323.2m dividends payment to shareholders \u2013 a figure signed off before the pandemic \u2013 and \u00a326m in net finance costs.<\/p>\n
United had projected revenues of between \u00a3560m and \u00a3580m this year until the pandemic, leading them to withdraw the forecast figure in May due to its effect.<\/p>\n
Broadcasting revenues fell sharply from \u00a3241.2m to \u00a3140.2m across the year due to Covid-19\u2019s impact \u2013 a drop of 41.9 per cent, which included a Premier League broadcasting rebate of \u00a314m for the 2019-20 season.<\/p>\n
United also suffered substantially as a result of the absence of supporters from Old Trafford from March onwards, with matchday revenue falling 19 per cent to \u00a389.8m.<\/p>\n
The club had been preparing to safely welcome approximately 30 per cent of capacity from the start of October and Woodward has questioned the UK government\u2019s contradictory policies on gatherings.<\/p>\n
\u201cWhile we recognize that public health must always be the priority, what is needed is consistency of approach,\u201d he said.<\/p>\n
\u201cIf people are allowed to sit on an airplane for hours, or in the cinema, or even watch football in a cinema, then why are they not allowed inside a stadium environment, which is professionally managed and controlled?<\/p>\n
\u201cIf indoor concerts are allowed, why should outdoor, socially-distanced football fans be treated differently?<\/p>\n
\u201cFans are the bedrock of this game and some of the inconsistencies out there are frustrating for them and indeed for the clubs.\u201d<\/p>\n