Premier League: Setback for Manchester United as empty stadium forces club to lose $30 million in Q1
Premier League: Setback for Manchester United as empty stadium forces club to lose $30 million in Q1 – Premier League giant Manchester…
Premier League: Setback for Manchester United as empty stadium forces club to lose $30 million in Q1 – Premier League giant Manchester United have suffered a massive $30 million loss in the Q1 of 2021 as the club’s earning from the sale of tickets took a hit due to COVID-19 restrictions. The iconic Old Trafford Stadium stayed shut for fans due to the pandemic.
As per a Reuters report, Manchester United’s match-day sales dipped to just $2.2 million compared to $40 million last season. The club’s revenue also slid, suffering The Premier League overall has also suffered massive loss, nearly $1 billion due to loss of broadcasting rights and empty stands.
As for Total revenue slid 4.4% from last year, with Executive Vice Chairman Ed Woodward saying it proved spectators were “the lifeblood of the game”.
The 20-time English champions in May saw the return of 10,000 supporters at Old Trafford. The stadium called the ‘Theatre of Dreams’, has a total capacity of 75,000.
The club, which saw its men’s team finish second in the English Premier League for the 2020-21 season saw a 125.4% surge in broadcasting revenue in the quarter, thanks to five additional league matches played during the period this year.
However, all the matches were played behind closed doors and the club’s ‘Megastore’ retail outlet stayed shut, causing a slump in matchday and retail, merchandising apparel, and product licensing revenues.
Total revenue fell 4.4% to 118.3 million pounds, Manchester United said. The club had said in April that Woodward will step down at the end of 2021 after he drew heavy criticism from fans and b European football’s governing bodies for its involvement in the breakaway European Super League project.
Premier League clubs such as Manchester City, Manchester United and Liverpool amongst others have combined reported a cumulative pre-tax loss of almost £1 billion ($1.4 billion) for the coronavirus-hit 2019-20 season, according to a report by finance company Deloitte.
The primary reason for such a huge loss was the lack of ticket sales. Fans were locked out of English top-flight stadiums in the latter stages of the 2019-20 campaign because of the pandemic and only returned on a limited basis towards the end of the 2020-21 season. Furthermore, the suspension of the Premier League 2019-20 season midway also led to a 13% reduction in revenue from the broadcasting rights.