World's richest club sees debt soar as a result of Brexit impact on the pound.
They may currently be the world’s richest club, but Manchester United are also on course to increase their debt levels due a collapse in the pound in the wake of Brexit.
United expect to achieve record revenues this financial year, and on Thursday they announced record profits for any quarter in their history. However, their net debt has increased by 27.1% to £409.3m as Sterling has weakened following last summer’s vote by the UK to leave the EU.
Total revenue for the fiscal second quarter ending 31 December 2016 was £157.9m – an 18% increase on the same period in 2015 – this was achieved despite the club missing out on Champions League qualification.
United’s net debt, however, has soared £87.2m to £409.3m, with the club blaming “the strengthening dollar”.
Broadcasting revenue was up 40.8% for the quarter to £52.5m and matchday earnings rose 27% to £38.6m, due to an increase in matches. Theese increases mean United are on target to achieve record revenues of between £530m and £540m in the period from July 2016 to the end of June 2017.
Executive vice-chairman Ed Woodward said: “We are pleased to be competing for the first available trophy of the season when we travel to Wembley to face Southampton in the EFL Cup final this month. The robustness of our business model continues to be reflected in our strong quarterly financial results and we remain on track to deliver record revenues for the year.”
Amortisation for the quarter was £34.2m – an increase of £12.6m over the prior year quarter – due to the players United signed in the summer.