Manchester United Has Lost $50 Million in 2018

Pic of Manchester United player Paul Pogba

Manchester United, the world’s most valuable soccer team, keeps growing but they recorded a net loss last year.
Pic of Manchester United player Paul PogbaManchester United has posted record revenue of $794 million in the fiscal year ending June 2018. This is a lot of money in local currency. The soccer team also had a net loss of $50 million. This is compared with a profit of $53 million in 2017.
The only other soccer teams with more revenue than Manchester United are Barcelona ($1.09 billion) and Real Madrid ($892) million. However, Barcelona’s figure includes player transfer profits. This includes the then-record $237 million they got for Neymar (Brazilian forward). This is when he moved to Paris Saint-Germain in 2017.
Manchester United’s earnings release noted that the United States federal corporate income tax rate reduced from 35% to 21%. This was after the substantive enactment of US tax reform on the 22nd of December 2017. This allowed the re-measurement of the existing deferred tax position in the period to 31 December 2017. As a result of this, the loss for the 12 months ended 30 June 2018. This includes a non-cash tax accounting write off of about £48.8 million ($66 million).

Let’s look at the Club’s Profits

Despite the team’s net loss, they threw off a massive amount of cash. The team reported earnings of $238 million in fiscal 2018. This is before taxes, interest, depreciation and amortization of $238 million in fiscal 2018.
For fiscal 2019, Manchester United soccer team expects its revenue to come in between $828 million and $848 million.  They expect the earnings before interest, tax, depreciation and to land anywhere from $236 million and $256 million.
During the last year, shares of the soccer team have increased about twice as much as the Standard & Poor’s 500.
Somehow there is something about money that makes everything exciting. Probably this is the very same reason why many people enjoy real money online gambling on sports.