Brexit costs Manchester United £87.2million as club’s debts rocket after collapse of the pound following historic vote to leave EU
United now owe £409m as debt increases by 27 per cent following the collapse of the pound against the dollar
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MANCHESTER UNITED have been hit by an £88million increase in the size of their debt because of Brexit.
United's total debt has risen 27 per cent to £409m, with the club being hit by the collapse of the value of the pound since the decision to quit the EU.
The Premier League club's debts are valued in the US dollar, and because the pound has weakened that has seen their liability shoot up massively.
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United have today published their second quarter figures for the period between October-December 31 2016.
And they leave little doubt it was Britain's decision to leave Europe that has sent their net debt spiralling.
The club report said: "The gross USD debut principal remains the same. The increase in net debt is due to the strengthening US dollar, with the USD/GBP exchange rate moving from 1.4747 at December 31 2015 to 1.2293 at 31 December 2016 resulting in an £88m increase in gross debt.
"Offsetting this were movements of £0.8m inclduing secured bank loan repayments and an increase in cash and cash equivalents."
While the level of the rise in debt has surprised many, United still believe they are in a healthy financial position as a club and business.
Net revenue for the quarter was £157.9m, up 18 per cent year-on-year, while they turned a profit of £17.5m.
And they have been able to offest the loss of revenue from missing out on Champions League football this season because of the increase in the domestic television deal, which brought in £52.5m over the three months.
The figures also show how Bastian Schweinsteiger's return to the first team squad has seen a further £4.8m added to the club's asset list.
Schweinsteiger had been written off as an asset in the last set of quarterly results to the tune of £6.4m.
United's executive vice-chairman Ed Woodward said: "The robustness of our business model continues to be reflected in our strong quarterly financial results and we remain on course to deliver record revenues for the year."
