US President Donald Trump has cost Manchester United.
On Thursday, the club posted their latest financial figures and, although the picture was a positive one overall, Trump’s drastic December tax reforms were blamed for United’s half-year loss of £21.1m.
Trump cut US corporate tax rate from 35% to 21% in the final month of 2017, forcing United – listed on the New York Stock Exchange – into a non-cash write off of £48.8m.
Despite this, the report was largely very positive for United, as expected. Their projected revenue for 2018 has been adjusted to £585m – £10m more than the originally forecasted figure.
It was also revealed that wages paid to staff make up half of the club’s costs, rising by 9.4% to £69.6m. The increase in wages was partly explained by the fact the team returned to the Champions League this season – something which earned them more in TV revenue.
In fact, broadcasting revenue was up on the whole by £61.6m, a 17% increase on the previous year.
“Our solid business model has allowed us to invest in the future of the Club with the extension of Jose Mourinho’s contract as manager and the acquisition of Alexis Sanchez,” Ed Woodward, the club’s Executive Vice Chairman said. “We look forward to the remainder of the season with confidence,” he added.
