Manchester United blames US president Donald Trump for half-year loss of £29m.
United have suffered their biggest financial loss in nearly eight years as a result of Donald Trump’s new tax reforms in America.
United were knocked into the red by a non-cash write-off of £48.8million, leading to an overall loss of £29m for the six months to December 31, according to the club’s latest financial figures announced on Thursday.
It represents United’s worst results since a third-quarter loss of £65.8m in 2010. In the same period last year, they had made a profit of £18.7m.
Its very important to reiterate that it’s a non-cash accounting charge only which has no impact on our financial competitiveness or our ability to meet Financial Fair Play regulations.’ United’s overall revenue for the quarter rose four per cent to £163.9m, although commercial, sponsorship and matchday revenue were all slightly down.
The club spent £69.6m on wages and benefits in the final three months of 2017, up £6m on a year earlier due mainly to player bonuses for reaching the Champions League.
Old Trafford chief Ed Woodward claimed that United’s ‘solid business model’ has enabled them to offer new signing Alexis Sanchez a total of £600,000-a-week, and extend manager Jose Mourinho’s contract.
Woodward revealed that the Sanchez deal was already paying off after the Chile star set a new record for shirt sales by a January signing – treble the previous best set by Juan Mata in 2014.