MANCHESTER UNITED CONTINUE TO EXPERIENCE ANTICIPATED FINANCIAL EFFECTS

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 More disappointing news coming from Manchester United football club these past few days. More importantly, today’s article will center more or less on reflecting on the disappointing news recently delivered by Manchester United. 

 

 

  

Previous visitors of the Manchester United Channel website will most likely not to be surprised to receive this particular news which was released by Manchester United football club at the tail end of October 2020 simply because this topic, in particular, is an issue which had been predicted to unravel at Manchester United football club in response to the current COVID19 crises. In a few articles published here at Manchester United Channel in the earlier periods of the year 2020, the issue of the current pandemic and the financial results of the COVID19 pandemic will have on big clubs such as Manchester United took center stage as we move forward into the future. 

 

 

 

 

 

 

 


 

Today's article will touch base on the COVID19 crises and the recent information received here at Manchester United Channel concerning the financial results of the COVID19 crises has resulted in the Manchester United football club.  

 

There really is nothing more to be said about the recent financial news coming out of Old Trafford except to reiterate what has already been said here at Manchester United Channel website which is that on October 2020,  important information on the financial status of the Red Devils was willingly released by Manchester United football club. 






According to the information, Manchester United record %18 drop in annual revenue for the fiscal year of 2020 which means that compared to the annual profit of 627.1m which the Red Devils had registered in the previous fiscal year of 2018/19,  

 

 

Manchester United had recorded a revenue of 509 million for the 2019/20 fiscal year. Believe this or not, any loss recorded in the record books of any football club will more often than not affect the club’s ability to function efficiently and progressively from an economic standpoint. 

 

 

 

 

Manchester United’s current financial downturn simply signifies the major reason behind the recent lack of big-money signings which was expected to occur in the summer of 2020 but never did. During the very early periods of 2020, the understanding around what was expected to unfold around Manchester United was that the club would part ways with a few minor players and possibly one major player in the squad.  

 


 

The finances received through the departure of some of these was expected to be reinvested into making two or three additional signings who were to compliment the recent additions of Bruno Fernandes, Donny Van der Beak, Edinson Cavani, Alex Telles, Ahmed Dialo Traore, and Faucando Pallestri as new Manchester United players. However, the expectation of further top-class signings at Old Trafford was expectedly overturned by the recent collapse of the global market and from what is understood here at Manchester United Channel, the recovery period for the global market to return to a stage where the European economy can function without overly increased tax rate is estimated to possibly be around the year 2025. With an inflated economy expected to be operating around the Globe, club giants such as Manchester United are expected to continue to pull out of mega deals each transfer window for the foreseeable future. 

 

 

 

 


 

According to the comments delivered by Manchester United vice president Ed Woodward, Manchester United’s recent experience in the European market have left the club incapable of completing major moves in the transfer market this 2020 summer season, a trend which is estimated to last far beyond just the now concluded 2020 summer transfer and a trend expected to last at least until the end of the 2021 summer transfer window- 

 

"While our commitment to investment remains, it must be balanced with recognition of the extraordinarily challenging environment facing us and all football clubs at this time." 

-He pointed out that for the first time in five years there had been no single transfer over the €100m mark, and that United's European "peers" Real Madrid, Barcelona, Bayern Munich, Juventus, and PSG had a combined net spend of €9m- 

                 ( Husmukh Kerai - SkySports.  21 Oct 2020.) 

 

 

 

From the information received from the English giants, Manchester United continues to show signs of high confidence in the strategy of investing mildly in each transfer window while developing and promoting young talent from the Manchester United academy into the senior team at Manchester United. A strategy that Manchester United football continues to believe will result in great success shortly for Manchester United. The one debate which has held firm as a flaw in the current strategy for success set by the Board of Directors and the Managerial staff at Manchester United is that the current strategy of spending little assert in the transfer window mixed with few players leaving the club during each transfer window and promoting players from Manchester United academy into the senior team has yet to produce any major trophies at Old Trafford for over six years. 

 

 

 

 

 

 

 


 

One aspect of the present-day reality which has been true for the Red Devils is that the growth of capital has hit a plateau in 2020 and the recovery period for Manchester United will take time to reboot and return to normal. Unfortunately for Manchester United football club, what the current breakdown of the global economy might signal for the Red Devils in terms of investment into the transfer window for the year 2021 is that Manchester United will look to limit expenditure especially during the 2021 summer transfer window.


This is the choice Manchester United might take as a way of balancing the financial scale between the profit margin and the expenditure operating within the football club. The choice of limiting expenditure will most likely be effective especially since Manchester United Ltd will not be expecting the usually increased profit margin received from the sale of matchday ticket prices and a fully packed Old Trafford stadium to return anytime shortly. 

 

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