Manchester United have faced a massive economic hit due to the current suspension of the Premier League, executive vice-chairman Ed Woodward has revealed on Thursday.
The club’s debt has risen by 42 per cent and it currently stands at £429.1 million. This means their debt has gone up by a figure of £127.4 million while Woodward has also revealed that the club will have to authorise a £15 million refund to the various broadcasters.
He said, as reported: “Our third-quarter results published today reflect a partial impact that the pandemic has had on the club, while the greater impact will be in the current quarter and likely beyond.
“There are still profound challenges ahead, and for football as a whole, and it is safe to say it will not be ‘business as usual’ for some time.
“Our club is built on a solid foundation. We remain one of the most popular teams in the most followed global sport and have created a strong financial base with diverse revenue streams.
“However, the repercussions of the pandemic are now being felt widely across the football community, not just by clubs, but also by players, supporters, broadcasters, sponsors and many other stakeholders.
“We must recognise that this crisis will not disappear overnight and that the world which emerges will be different from how it was before.
“That will create challenges for football, like many other industries, but it also brings an opportunity for innovation and creativity as we explore options for resuming football in ways that still protect public health.”
Are Manchester United bracing for a poor transfer window?
These figures are massive and right now many fans are fearing that Manchester United might have no other option but to cut down on their spending during the transfer market this summer.
Ole Gunnar Solskjaer, a couple of weeks ago had already hinted that the upcoming window might be different but we do not think, the steep rise in debt will force Manchester United to pull the plug on their current transfer targets.
Man United have a really strong financial backbone and if UEFA are to alter the Financial Fair Play rules as proposed, then the Glazers will surely be pumping money into the club at the end of the season.
So all said and done, it’s not yet time to hit the panic button.