⚽ Manchester United Revenue Drops Nearly 19%

Stock rallies on future prospects


Hey Global Investor, here’s what you need to know before the US markets open.

Market Snapshot ?

  • S&P 500 (Wednesday Close) 3,435.56 −7.56 (0.22%)
  • NASDAQ (Wednesday Close) 11,484.69 −31.80 (0.28%)
  • FTSE 100 (5 PM IST) 5781.16 +4.66 (0.08%)
  • NIFTY 50 (Today’s Close) 11,896.45 −41.20 (0.35%)
  • USDINR (5 PM IST) 73.68 (1 Year +4.17%)

Manchester United Revenue Drops Nearly 19% in a Covid-19 Hit Season

Yes, Manchester United is listed on the NYSE. The 20-time English champions’ financial statement revealed significant losses and rising debt – the pandemic’s impact.

What Happened? The Red Devils reported revenue of £509M, down 18.8% from last year’s £627.1M. This was in part due to the club not qualifying for last season’s Champions League. The club reported a net £23.2M loss for the financial year, compared to the £18.9M profit in 2018-19. United generated just £5.5M in Q4 ending June 2020 compared to £23.8M in the year before, with fixtures either postponed or played behind closed doors.

The club feels the burn of paying out rebates to broadcasters and shutdown of the famous “Megastore” at Old Trafford. The club also didn’t receive £50M worth season-ticket money and £80M sponsorship payments (deferred), all leading to reduced cash flow. However, this did not stop the club from paying out £23.23M in dividends, most of it going to the owner Glazer family. This when the club’s net debt rose 132.9% to £474.1M, and net finance cost jumped from £3.5M to £26M.

United has £50.1M in the bank and a £200M credit facility, but the return of fans in the stadium remains a priority. United’s executive vice-chairman Ed Woodward urged the UK government to allow fans back in the stadium as soon as is it is safe to do so. He bemoaned the inconsistencies in rules and confirmed that the club played an active role in planning “Project Big Picture” – a proposal to restructure English football.

Many Manchester United fans dismiss the message from Old Trafford about the financial impact of Covid-19. The owners remain unpopular among broad sections of fans due to dumping enormous debt onto the club. The fans argue finance charges arising due to the club’s debt are the main issue and not the pandemic. Lack of credible player transfer activity and indifferent on-field form are all blamed on the board. None of it really concerns the top brass as long as United’s commercial pull remains intact.

Market Reaction: United’s stock closed at $14.56 on Wednesday, up 9.31%, due to optimism regarding the medium- and the long-term.

Company Snapshot ?

  • MANU $14.56 +1.24 (+9.31%)

Newsworthy  ?

  • Fizz: Coca-Cola earnings top estimates, despite 9% decline in revenue (COKE -0.48%)
  • Hold Your Spot: Target says it will hold your spot in line as it looks to make holiday shopping safer during Covid pandemic (TGT -0.96%)
  • Speeding Up: Tesla shares jump 5% after reporting fifth consecutive quarter of profits (TSLA +0.17%)

Later Today  ?

  • 6.00 PM IST: Initial jobless claims
  • 7:30 PM IST: Existing home sales (SAAR)
  • Before Market Open: American Airlines Earnings (AAL)
  • Before Market Open: Southwest Airlines Earnings (LUV)

“Fun Fact of The Day”   ?

  • Only two mammals like spicy food: humans and the tree shrew


Disclaimer: The content of this article has been created and published by Winvesta India Technologies Pvt. Ltd., in order to ease the reader’s understanding of the subject matter. The information and/or content (collectively “Information”) provided herein is general information sourced through various news reports and does not constitute a research report or a research analysis. The Information is not intended to offer advice, target or solicit any particular customer or group of customers to buy or sell securities. 

Winvesta does not render any research or advisory services and provides a more detailed description of its services on its website and mobile application along with the terms and conditions published therein from time to time. While reasonable care has been exercised to ensure that the Information is adequate and reliable, no representation is made by Winvesta as to its accuracy or completeness and Winvesta, its affiliates, subsidiaries and employees accept no liability of whatsoever nature for any direct or consequential loss, including without limitation any loss of profits, arising from reliance on this Information. Neither Winvesta nor any of its affiliates are acting as an investment adviser, research analyst or in any other fiduciary capacity. Accordingly, reader’s are expected to undertake their own due diligence in consultation with their own advisors and are advised not to solely rely on the Information. Any such reliance shall be at the reader’s own risk. 

All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. There is always the potential of losing money when you invest in securities, or other financial products. Investors should consider their investment objectives and risks carefully before investing.


Start Building Your Global Portfolio Today

Download Winvesta App now to Get Started