Man United debt rises by 133% to £474m following coronavirus-hit campaign: Report

Manchester United's executive vice-chairman Ed Woodward has claimed that Red Devils need to adapt to “significant ecomic ramifications" following pandemic. On Wednesday, 20-time English champions released a financial statement showing that ir net debt has increased by 133%. Man United paid out £20 million in dividends to ir owners, Glazer family, despite club's debt skyrocketing from £203.6m to £474.1m over course of last 12 months.

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Man United finances: Club posts drop in profits owing to ecomic ramifications of pandemic

Just a day after Man United recorded an impressive 2-1 win over PSG in ir opening Champions League Group H clash, it was revealed that English giants suffered a severe setback in ir finances. Along with significant increase in debt, club's fourth quarter and full financial year results showed Man United's revenue dropped by 19% from £627.1m to £509m and a loss of £23.2m compared to  £18.9m profit made last year, largely because of COVID-19 situation.

Red Devils claim that pandemic has cost m around £70m in revenue, with lack of Old Trafford matchdays and closure of club shop all contributing to a large chunk of that sum.

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Man United debt: Red Devils confirm dividend payments to Glazer family despite rise in net debt

According to reports from MEN, Man United's principal debt remained  same but  club’s net debt rose by 133% to £474m. Apart from pandemic, Man United have claimed that decline in cash income was due to  money spent on player transfers with Donny van de Beek (£40m) and Alex Telles (£13m) arriving at club. pandemic has seen games being played behind closed doors, hurting United more than rest. 

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However, United paid a furr £11.9 million in dividends to shareholders over three months from April 1 to June 30, with majority of sum being paid to six members of Glazer family who own shares at club. Dividends are paid twice a year, in January and June, and a decision will reportedly be been made soon on wher payments in January will be made as usual or t.

Reports also claim that Ed Woodward is w  'exploring options' following United's key role in controversial "Project Big Picture" plans.

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Im Credits - manunited.com