Manchester United’s debt has risen by 18%, to close to £338m, in part due to Great Britain’s decision to leave the European Union.
The increased figure is included in financial results United have reported to the New York Stock Exchange for the first quarter of the new financial year. The club’s revenue for the three months ending 30 September 2016 is down by 2.8%, from £123.6m to £120.2m, while operating profit is down by 35%, to 6.2m. This is in part due to the club’s failure to qualify for the Champions League.
The standout figure, however, is the net debt, which has risen from £286.2m to £337.7m. According to the results, this is due to “the strengthening US dollar; with the USD/GBP exchange rate moving from 1.5128 at 30 September 2015 to 1.2941 at 30 September 2016”. The exchange rate has been directly affected by Brexit.
“While our financial results for this quarter reflect the impact of our non-participation in the Uefa Champions League, we are pleased that we remain on track to deliver record revenues for the coming year,” Ed Woodward, United’s executive vice-chairman, said. “During the quarter we added a number of top-quality players to our squad, which once again demonstrates our determination to challenge for trophies.”
United remain on course to top last year’s record revenues figure of £515.3m, forecasting overall revenue of between £530m and £540m for the end of the financial year.
The team are sixth in the Premier League, eight points behind the leaders Liverpool.