Manchester United PLC (LON:MANU) shares tumbled in New York after the club’s second-quarter financial results revealed a £64mln increase in its debt pile, which at the end of December stood at £455.5mln.
United, in a statement, said the rise in debt reflected the impacts of lost matchday receipts as fixtures continue to be played ‘behind closed doors’, along with deferred sponsorship payments.
The football club saw £1mln of cash from operating activities go out the door in the quarter, compared to a £14.2mln positive cash flow in the comparative months last year – a change that was similarly accounted for by the lack of match going fans.
It banked £108.7mln of broadcast revenue for the period, up 68% or £44mln boosted by the club’s participation in the UEFA Champions League in the first half of the season.
Commercial revenue was down 11.3% or £8mln at £62.6mln for the quarter. Specifically, sponsorship revenue fell 16.2% or £7.3mln marking the impact of an existing shirt-sponsorship deal being stretched over a longer period and one-off sponsorship credit last year.
United had £80.6mln of cash at the end of December and a further £140mln was available under its revolving credit facilities.
“As we approach a full year since our last game with fans at Old Trafford, we reflect on an extraordinarily challenging 12 months for football and society as a whole,” said Ed Woodward, executive vice-chairman.
“The rapid rollout of vaccines in the UK and beyond gives us confidence that we are now on a path towards normality, including the return of fans to stadia.”
In New York, United’s shares fell by 71 cents or 3.63% changing hands at US$18.83.