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United losses soar

Manchester United’s quarterly losses soared due to costs from the sale of a major stake in club to chemicals billionaire Sir Jim Ratcliffe.

Man United reported a third-quarter net loss of more than £71mn in the three months ended March 31, up from £5.5mn a year earlier, while revenue decreased almost 20 per cent to £136mn, it said on Wednesday.   Lower revenue on back of no European matches was a factor.

Wages still up 7%.  Interest costs over £1m a week, taking total interest since 2005 to £960m

The sale of a 27.7 per cent voting stake to Ratcliffe’s Isle of Man entity in December saw the club incur exceptional costs of around £30mn for previously disclosed advisory and legal fees.

Ratcliffe agreed to inject $300mn of fresh capital as part of the deal and United has moved to slash up to 250 jobs and reduce costs as part of a turnaround project. 

 

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