Nearly $660,000,000 Debt News Strikes Manchester United, Just Days After $1.2 Billion Was Wiped Off Team’s Market Value

All seemed to go well for Manchester United after their Carabao Cup victory. But their season took a heavy plunge after the 7-0 bashing by Liverpool. To make matters worse, the scene outside the soccer pitch is not going well. With the fans unhappy with the reign of the Glazer family, many investors have stepped up to purchase the soccer club. However, it would be a deal that would not be straightforward. The club’s finances are in tatters as the latest revenue reports suggest their debt rose. Hence, the takeover seems to get complicated with each passing day. 

These reports come days after $1.2 billion was wiped off the club’s market value. Moreover, the latest financial reports stated the club’s debt rose from $589 million to $661.4 million. The next owners would be caught in two minds while taking over the club as the deal stalls. 

Manchester United reports colossal losses in the latest financial reports!

Despite the rising debt reports, United stated how their total revenue decreased by 10% every year despite showing a rise in their commercial revenue. They reported how their commercial revenue increased by 22.2% to $97.1 million. Even though there is an increase in matchday income, hospitality, memberships, and broadcasting income went on a downward spiral. But not all is lost. Although the club took a massive hit in their revenue streams, they remain confident of posting profits for the end of the season. 

The club stated they made a net profit of $7.7 million for the quarter. Moreover, they expect their total revenue for the fiscal year to be between $728.8 million and $753.7 million. According to the Mirror, the club statement suggests, “Commercial revenue for the quarter was £78.7 million, an increase of £14.3 million, or 22.2%, over the prior-year quarter.“

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Maybe after Cristiano Ronaldo left the club, United’s merchandising also took a hit with a 3.1% decrease in total revenue generated. Before, they competed in the Champions League during the 2021/22 season. Yet, those revenues have dropped significantly with the club’s failure to qualify for the Champions League this season. To sum up, it cost the club as it saw a decrease in its revenue from $72.5 million to $34.2 million. Matchday revenue also dipped by 13.6%. The club is in shambles! 

Who will buy United?

The rising debts are a cause of concern for potential suitors. The Glazers will remain at the club but will sell a minority share to investors who are open to purchasing shares. There are many suitable frontrunners. British billionaire Sir Jim Ratcliffe enquired about taking over the club he loves. Likewise, Qatari banker Sheikh Jassim also expressed interest in acquiring the club under his tutelage. 

Therefore, the sketchy financial reports would leave a bitter taste in the potential investors. Although United is not a sinking ship, the anchor has touched the bottom of the ocean. If not taken seriously, the club could probably face a Barcelona situation with various financial irregularities. Do you think the owner needs a change?

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