Manchester United financial report: £300m debt and a deal with Maui Jim
English Premier League soccer club Manchester United stuck to its forecast for the year to June 30 even as it posted a drop in third-quarter core earnings hurt by a hefty wage bill.
Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) for the three months to Mar. 31 came in at 41.2 million pounds, down from 45.7 million a year earlier, the club said on Thursday.
That reflected in part the impact of wage costs of 84.8 million pounds, an increase of 9.7 million pounds from a year ago, mainly due to investment in a playing squad which includes French World Cup winner Paul Pogba and Chilean Alexis Sanchez.
Calls to rebuild the squad have grown louder after the 20-time English champions missed out on a berth in next season's lucrative UEFA Champions League competition.
"Preparations for the new season are underway and the underlying strength of our business will allow us to support the manager and his team as we look to the future," Executive Vice Chairman Ed Woodward said, after what he called a "turbulent season".
Despite a brief upturn in form after replacing manager Jose Mourinho with former striker Ole Gunnar Solskjaer, the team stuttered in the last few weeks and ultimately finished in sixth place in the domestic league, a whopping 32 points behind champions Manchester City.
The 20-time English champions continue to expect revenue of 615-630 million pounds and adjusted EBITDA of 175-190 million pounds for 2018-19. The club's net debt stands at £302 million pounds.
The club also confirm the signing of Maui Jim, but that is not a player, it is an eyewear company founded in Hawaii.
Additional reporting from Reuters.