Manchester United revenue shrinks 19% in a year as coronavirus impact felt

Manchester United suffered a £118.1m loss in revenues, down to £509m from £627.1m, for the financial year ending in June 2019, with the impact of the coronavirus pandemic a major factor.

The loss is an 18.8% downturn for the 12 months, with the last financial quarter showing a 38% reduction – £131.4m to £81.5m. The club estimates that £70m of revenue lost across the year can be attributed to Covid. “We expect the impact to remain visible for quite some time to come,” Ed Woodward, the executive vice-chairman, said.

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The final-quarter results include the three-month football lockdown. Once competition resumed United had only one home Premier League game, two away matches and an FA Cup quarter-final – also away – before the end of June. All were played behind closed doors.

The club said: “This significantly impacted fiscal 2020 broadcasting revenue, recognised when home and away matches are played, and matchday revenue, given the remaining matches have been played behind closed doors. Furthermore, broadcasting revenues have been significantly impacted by rebates due to broadcasters following disruption of the 2019-20 competitions.

“Megastore operations resumed on 15 June 2020, with a variety of new safety measures and hygiene protocols in compliance with government guidance. However, other operations at Old Trafford remained closed throughout the entire fourth quarter.”

The accounts also show that the United have paid a £23m dividend again, which mostly goes to the Glazer family that owns the club.

Woodward said getting fans safely back into stadiums was a priority and spoke publicly regarding United’s and Liverpool’s involvement in a plan to redraw the football pyramid via Project Big Picture, which was not successful.

“We strongly believe in supporting the English football pyramid, both in the short term, to address the issues created by Covid-19, and in the long term to improve financial sustainability at all levels of the game,” he said.

“There will always be intense debate around any changes to the structure of football, just as there was before the formation of the Premier League 28 years ago. Now, at this critical juncture for the game, we must ensure that the huge success of the Premier League is reinforced while ensuring that the wider football pyramid continues to thrive in a rapidly changing media environment.” He added that United were “committed to playing a leading role in pushing that process towards a successful outcome”.

Addressing issues on the pitch Woodward said: “We will never be satisfied at Manchester United unless we are winning trophies. But our third-place finish in the Premier League and strong cup runs last season showed that, while there is more hard work ahead and the path is not always smooth, we are making progress. We have a clear strategy under Ole to build a successful, committed team, with a core of home-grown talent blended with high-quality recruits, that plays fast flowing, attacking football.”

He added that net investment in new players since summer 2019 was “over €200m – more, I believe, than any other major European club over that time period” and stated: “We are investing and will continue to invest to back the manager.”