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United losses increase

Manchester United's losses have widened after the pandemic kept fans out of stadiums and prevented the team from taking part in lucrative pre-season tours.

In the full year to 30th June, revenues were down by 3 per cent to £491m.  The club blamed the loss of ticket income, the closure of its megastore hitting merchandise sales and a fall in sponsorship income because the team was unable to go on a summer tour of exhibition matches.

There was a net loss of £93.2m, up from £23.2m, although this was blamed mainly on accounting charges related to an increase in the UK corporate tax rate.  The club said that its operating loss of £36.8m, compared with a profit of £5.2m the year before, was a better reflection of the impact of the pandemic on the business.

However, it appears to have weathered the crisis better than many other top European clubs, with an increasing in broadcasting income partly because of the team's return to the Champions League.  Net debt fell by 11 per cent to £419.5m.

The club's wage bill, its largest cost, rose by 13.6 per cent to £322.6m.  That wage bill is set to rise again with the signing of Ronaldo, who will be the highest paid player in the Premier League.

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