Why Manchester United net debt has risen and revenues have fallen

Manchester United posted a 22% increase in commercial revenues in their latest financial results, but saw income from matchday revenues and broadcasting deals fall.

The results cover the three-month period to December 31, 2022, and are affected by the break in the season for the World Cup and the fact United failed to qualify for the Champions League this season.

During that three-month period, the club posted a net profit of £6.3m but revenue compared to the previous year fell by 10%, to £167.3m. That is impacted by the failure to qualify for the Champions League.

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The club's accounts also point to the long-term debt rising to £535.7m, compared to £477.1m the previous year. That is down to the exchange rate and the strength of the dollar against the pound. The debt owed in the US remains at $650m.

United have seen the cash reserves shrink to £31m, down from £87.4m a year ago, while the club's revolving credit facility is now at £206.2m after taking out another £100million in the previous three months. Those changes are as a result of the investment in the squad last summer and United expect to pay off the balance of the credit facility by the end of June this year.

United sources also insist there is no issue with short-term liquidity and that cash levels are expected to increase during the remainder of the year, with sponsorship and season-ticket money coming into the business. The accounts make no mention of the current search for a sale or investment in the club, but sources stress that is to "meet the club’s long-term capital investment needs".

The 22% rise in commercial revenue has been driven by the training kit agreement with Tezos and brought in