Manchester United financial results: Net debt rises by nearly £130m after paying Harry Maguire fee in cash

Manchester United’s net debt rose by nearly £130million because they paid Harry Maguire’s world-record fee in cash.

The centre-back became the most expensive defender in history when joining from Leicester last summer in an £80m deal.

While transfers are usually made in instalments, United agreement to pay the fee up front after months of negotiations over Ole Gunnar Solskjaer’s top target.

Latest financial figures released to the New York Stock Exchange reveal United’s net debt rose from £301.7m to £429m.

It is understood the signing of Maguire was the key reason for the jump, while the first instalments of Bruno Fernandes’ £47million January move from Sporting Lisbon also had an impact.

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United’s gross debt remains at $650m (£531m).

Despite selling Romelu Lukaku to Inter Milan for £74m, that fee is being paid for in instalments.

United have revealed the impact of the coronavirus pandemic and estimate a rebate of £20m to broadcasters due to football being placed on lockdown.

They have also refused to give guidance on finances going forward as due to the uncertainty of Covid-19, which will see the Premier League campaign completed behind closed doors if plans to resume season go ahead next month.

In total United made an operating loss of £3.3m, but have opted against asking players to take wage cuts or deferrals and have refused to furlough staff.

They have also indicated their strength with cash balances of £90.3m and “access to an additional £150m available under the Company’s revolving credit facility.”

But chief financial officer Cliff Baty said spending would be reviewed. Ed Woodward had already warned it would not be “business as usual” in the transfer market as Solskjaer aims to make at least three major signings.

Baty said: “In response to the financial impact of Covid-19 we’ve taken action to closely control costs and review our planned capital expenditure.”

United’s finances will also be hit after confirming they will not take part in their customary money-spinning summer tour.

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Woodward added: “There are still profound challenges ahead, and for football as a whole, and it is safe to say it will not be ‘business as usual’ for some time.

“Our club is built on a solid foundation. We remain one of the most popular teams in the most followed global sport and have created a strong financial base with diverse revenue streams.

“However, the repercussions of the pandemic are now being felt widely across the football community, not just by clubs, but also by players, supporters, broadcasters, sponsors and many other stakeholders. We have a shared interest in protecting our sport during this period, so It’s crucial that we work together in a spirit of solidarity to maximise our chances of coming back strongly as the pandemic recedes.

“We must recognise that this crisis will not disappear overnight and that the world which emerges will be different from how it was before. That will create challenges for football, like many other industries, but it also brings an opportunity for innovation and creativity as we explore options for resuming football in ways that still protect public health.

“While nobody is claiming that football is the most important thing at this time, our sport can play a role in helping restore morale and bringing people back together as societies recover. Indeed, the absence of live football, and the unifying experiences it creates for billions of people around the world, has reminded us all of how much the sport means to us.

“With that in mind, we remain firmly optimistic about the long-term prospects for the club and for our exciting, young team once we have worked our way through what is undoubtedly one of the most extraordinary and testing periods in the 142-year history of Manchester United. This club is built on resilience in the face of adversity and those qualities are being proven once again now.”

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