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The new 2020-21 season will be starting very shortly. As of 20/08/2020, we can see that Manchester United have not made any signings yet. In this thread, I will be highlighting the current financial status of Man Utd and what the current pandemic has done to the club.
NOTE: This thread will be made considering:
-Utd finally qualified for the UCL
-Utd pay the 20 mil dividend
-Utd somehow don't raise the debt
-utd dont buy players
-Fans do not go to the stadiums
-Utd finally qualified for the UCL
-Utd pay the 20 mil dividend
-Utd somehow don't raise the debt
-utd dont buy players
-Fans do not go to the stadiums
Man United have qualified for the UCL, which is where Man Utd should be. Broadcasting revenue could be worth upwards 80-90 mil pounds. However, even if Utd do make UCL, Utd can lose 60 mil over the next 5 quarters (via Operating Profit). Utd would generally make between 20-60 mil
Man Utd have ended the third quarter with over 90 Mil in cash on their balance sheet, which is basically like pocket money for a club so big. Utd have gotten an extra 140 mil from its revolving credit facility. Because there is no matchday revenue, the cash will be used to....
offset operating expenses. Utd will lose over 10 million per quarter, including the 140 mil and the 90 mil from the third quarter.
Another problem with Man Utd's debt is the fact that they have to pay over 180 mil in 12 months to pay off purchase obligations.
Since Utd have made UCL and have got their sponsorships secured, this is how much cash United could have in hand over the next few quarters. This is taking into consideration lack of new players and lack of matchday revenue
This is what United reported in may and though United have been able to sell kits and merchandise, matchday expenses will harm this club.
What can United do? The simple is sell players. This is what United will try to do by selling 5-6 players. Another is not pay dividends, which just means they would save 20 mil. Another possibility could be to sponsor the stadium. It may sound silly but then again,
Glazers have done this with their NFL team Tampa Bay Buc's stadium, naming it after a company called Raymond James. The worst possibility of them all would be to allow the debt to increase, if all else fails.
It's a good thing however that this pandemic has come. Pressure is being put on the Glazers and they are in loads of debt, the value may have even increased over 600 mil, which is the value of Utd's long term debt and the value of total current liabilities is at 415 mil
