Manchester United debt increased by almost $181 million in 2019

 

If you thought the situation for Manchester United on the pitch was troubling, fans looking for consolation in the club's financial situation may want to look away now.

 

While rivals Manchester City showed record revenues this year of $692.4 million, the eleventh consecutive year of growth under the ownership of His Highness Sheikh Mansour bin Zayed, United's net debt has increased by almost $181 million in their latest financial report -- a 55.5% increase on last year.

 

United's big spending blowout in the summer on defenders Harry Maguire and Aaron Wan-Bissaka and forward Daniel James are considered to be a contributing factor.

 

In 2018, Woodward reportedly claimed the club could make money regardless of performances and results on the pitch.
But this report demonstrates that performances on the pitch are seemingly impacting revenues.

 

The club had a $12.9 million drop in broadcasting revenue — primarily caused by failure to qualify for the Champions League — compared with the same period in 2018.

However it's not all bleak reading for Manchester United. The club saw a small total revenue increase to $175.1 million for the first quarter 2019/2020.

 

Football finance expert, Kieran Maguire, who teaches as the University of Liverpool, said the findings were "significant" but not entirely "worrying" for the club the size of Manchester United.

He said the debt was likely to have been caused by the heavy push in recruitment since Sir Alex Ferguson left the club as manager. David sagame365th Moyes, Louis van Gaal and Jose Mourinho followed Ferguson, before Ole Gunnar Solskjaer was appointed.

 

"When Sir Alex Ferguson left the club in 2013, Manchester United owed $43.9 million million to other clubs. In 2018 it was $333.7 million, which is a staggering rise," Maguire told CNN Sport.

 

"So many managers have come and gone, all bringing in different ideals and trying to sign different players ... the club supported these managers and spent an awful lot of money on credit," he continued.

 

A string of relatively unsuccessful managers have brought in a string of relatively unsuccessful players (with not such a relatively low price tag), according to Maguire.

 

"The likes of Alexis Sánchez, Ángel Di María, and to some extent Paul Pogba ... who all cost a lot of money but haven't really delivered," added Maguire.