Manchester United have announced that the clubs’ net debt has more than doubled in their 2019-20 financial statement.
As of the 30th June 2020, the net debt had increased 133% to £474.1 million. This is partly due to a £70 million drop in expected revenue for the same period.
The overall revenue saw an 18.8% decline from £627.1 million to £509 million, partly due to the club not participating in last season’s Champions League.
The financial statement includes the period in which the COVID-19 pandemic halted English football. The drop in expected and overall revenue is thought to have been a direct consequence of it.
United made a net loss of £23.2 million in the most recent financial year, compared to an £18.9 million profit in 2018-19.
Despite this, they added Edinson Cavani, Alex Telles, Facundo Pellistri, Donny Van De Beek and Amad Diallo to their playing squad in the summer transfer window, which the club claims is a contributing factor to their rising debt.
Woodward added: “On the pitch, we have strengthened the team over the summer, and we remain committed to our objective of winning trophies, playing entertaining, attacking football with a blend of academy graduates and high-quality recruits, while carefully managing our resources to protect the long-term resilience of the club.”
The report was not all doom and gloom, however, as United posted a commercial revenue increase of nearly 6%, as well as having extended their shirt sponsorship deal with Chevrolet for a further six months until the end of 2021.