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

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

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

Just a day after Man United recorded an impressive 2-1 win over PSG in their opening Champions League Group H clash, it was revealed that the English giants suffered a severe setback in their finances. Along with the significant increase in debt, the 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 the £18.9m profit made last year, largely because of the COVID-19 situation.

The Red Devils claim that the pandemic has cost them around £70m in revenue, with the lack of Old Trafford matchdays and the closure of the 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 the same but the club’s net debt rose by 133% to £474m. Apart from the pandemic, Man United have claimed that the decline in cash income was due to the money spent on player transfers with Donny van de Beek (£40m) and Alex Telles (£13m) arriving at the club. The pandemic has seen games being played behind closed doors, hurting United more than the rest. 

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However, United paid a further £11.9 million in dividends to shareholders over three months from April 1 to June 30, with the majority of the sum being paid to six members of the Glazer family who own shares at the club. Dividends are paid twice a year, in January and June, and a decision will reportedly be been made soon on whether payments in January will be made as usual or not.

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

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