Manchester United's debt reaches nearly £1bn

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FOOTBALL Manchester United's debt reaches nearly £1bn

Shafic Kiyaga 21:55 - 30.03.2023

The principal debt remains at $650m, but the change in the exchange rate means the club now owes £535.7m.

Manchester United are currently facing a stretched financial situation with the club owing nearly £1bn through a combination of gross debt, bank borrowings and outstanding transfer fees.

According to the club's second-quarter results, the debt owed has grown compared to the same point in the previous year.

The principal debt remains at $650m, but the change in the exchange rate means the club now owes £535.7m.

In addition, £206.2m has been taken from a rolling credit facility, with another £227.7m owed in outstanding transfer fees.

Despite this, the club has posted profits of £6.3m for the quarter, with sponsorship revenue increasing by 43.2% to £50.4m over the prior quarter.

This has been attributed to the club's training kit agreement with Tezos, as well as a 'one-off sponsorship credit' which has not been detailed.

However, there are concerns about the club's long-term capital investment needs, specifically for improvements to Old Trafford and the club's Carrington training ground.

A strategic review is currently underway to address these issues, and it is being stressed that this is not due to any issues with short-term liquidity.

Despite the financial situation, United's matchday revenues have been impressive, and the club's season ticket sales have been strong.

The wages for the quarter were down £20.4m to £77.3m, as the team are not participating in this season's Champions League.

It remains to be seen what the outcome of the strategic review will be and whether it will result in the sale of the Premier League club.

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