Cash Flow Analysis: Man Utd's ability to generate massive cash surplus from operations wiped out by Covid-19

29 October 2020

Man Utd
Photo: PA Images Manchester United went from a record-breaking cash balance of £308 million at the beginning of the year to a vastly reduced balance of £51.5 million at the end of the 2020 fiscal year.

Manchester United's recently published cash flow statements reveal how the club used their massive cash balance to finance shortages in operating income and massive player investments.

Operating activities fell by almost £250 million, largely offset by postponement of broadcasting revenues and lack of Champions League football.

The club's £217 million deficit in cash flows before financing was not backed by a capital injection. Instead the club used their accumulated cash account of £308 million to finance player recruitments, mainly Maguire, Fernandes and Wan-Bissaka.

Joseph Mailil, analyst jm@offthepitch.com

Manchester United recently published their financial report for the 2019/20 season, revealing just how great the financial impact of the pandemic has been on the club. The seasonal accounting period of many football clubs has skewed the cash flow statements for last season significantly due to the prolonging of the season, and this shows in the finances of Manchester United, who finished the season third in the league, securing Champions League football in the ongoing season.

Do you want to read this article?

Get instant access by signing up for a 7-day free trial

No credit card, no commitments and it will expire automatically.

You will receive a link that activates your trial in an email.