Manchester United’s Debt Increases By 30 Percent

Manchester United’s debt has surged by almost 30% due to political decisions. This has been attributed to the weakening of the pound that came after Britain left the European Union in 2016. Manchester United is owned by an American family and is now listed on the NYSE where it is now expected to deal with corporate tax rate changes that were reduced from 35 to 21 percent. These new changes made the club to make a write off of AUS 87 million in its second quarter of the 2016 financial year. In the year ended 31st Dec 2017, the club made losses of AU$52 million. However, the club is likely to benefit from the tax overhaul which was instigated by Trump. However, advisers including Cliff Baty who is the club’s financial officer said that they are working on the details of the impact to the clubs earning.

Cliff pointed out that the charge will, however, have an impact on the clubs ability to meet its financial Fair Play regulation and its competitiveness. Ever since the team returned to the champions league, its revenue has been rising by 10% annually. Notice that the return to the elite competition also caused the team’s wages to climb by 10 percent to about AU$124.3m.  This bill is expected to climb even further following the club’s decision to sign Arsenals Alexis Sanchez. Already, the club is enjoying the benefits of the signing the player after the revenue from the sale of the shirts increased exponentially.

Meanwhile, it is now official that Zlatan Ibrahimović has left Manchester United for LA Galaxy. The agreement was reported in the Los Angeles Times.  Zlatan is 36 years old and has scored 62 goals in over 115 international appearances. He is the only player who has appeared for 7 different teams in the champion league. Before he joined Manchester United in the 216/17 season, he was at Saint-Germain. He sustained a knee injury at Manchester which has limited his appearance to just five substitutes and two starts.

The club did not object to releasing him given that his contract was to end in June. The club officials thanked him for his contribution since his arrival and wished him well in his new assignments. Mourinho described him as an amazing player who had won a right to choose what he wants in life. He lamented that the knee injury had made it difficult for the player to enjoy his stay at Manchester.

 

 

News Reporter