ED WOODWARD
Brexit has been blamed for debt at Manchester United
rising by £51.5million.
In quarterly results published on
Thursday, United also revealed that net profits fell by 76 per cent from the
same period last year.
That is due to the lack of Champions
League football and fewer Premier League fixtures in the period.
News that the club's overall debt is
up 18 per cent to £337.7m will frustrate supporters who have seen that spiral
since the Glazer family took control in 2005.
The further increase is being put
down to 'the impact of foreign exchange rate movements' as the pound collapsed
following June's referendum on the European Union.
Operating profit, matchday revenue
and total revenue all dropped in the quarter, while commercial revenue
continued to grow after five new deals were announced.
United boasted that sales in their
Old Trafford megastore on the day of September's Manchester derby were a
record.
Executive vice-chairman Ed Woodward
said: '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.
'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 confirmed that failure to qualify for next season's
Champions League will see a huge reduction in their record £750m kit contract
with adidas, placing pressure on Jose Mourinho to deliver a top-four finish.
Cliff Baty, chief financial officer,
said: 'There is a clause in the adidas contract that if we are missing from the
Champions League for two years in a row, there is a 30 per cent reduction of
the following year's receipt.
'So what that really means is that
we would get, if we did miss out again, that would kick in and we would see 30
per cent of the future annual payment reduced.'
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