There’s been a lot of talk in recent days about the financial losses Manchester United attributed to Covid-19 in 2021-22, and its potential impact on the club’s Profit and Sustainability Rules (PSR) situation.
Everton and Nottingham Forest were both
punished last season for failing to comply with the Premier League’s financial
regulations, while United were judged to have complied.
United’s Covid losses were bigger than most due to their
size and the revenues they generate.
Old Trafford is the biggest club stadium in the United
Kingdom and the fall in matchday revenue was significant.
Some commercial partners suspended payments or cancelled
their contracts owing to the losses inflicted as a result of the pandemic,
while United were also unable to go on a pre-season tour in 2021, which they
would say had a significant dent in their revenues in 2021-22. Other teams were
also unable to go on tour, but again United’s earning power is higher — their
2022 summer trip to Thailand, Australia and Norway brought in around
£21.5million.
United had to renegotiate their Chevrolet deal and
eventually brought in TeamViewer as their front-of-shirt sponsor at a
significantly reduced rate, with the deal being negotiated during the pandemic. Some of the club’s commercial partners were
unable to pay, with United opting to suspend payments, meaning their bottom
line was hit as a result.
The Swiss Ramble He estimated United’s £247million
Covid-inflicted losses reflected a £138m hit to their matchday revenue, an £87m
hit to their commercial revenues and a £22m fall in their broadcast income.
Other clubs he indicated had surpassed £100million in Covid
losses included Arsenal and Tottenham Hotspur.
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