Red Devils affected by Trump’s reforms in the USA
Big powerhouse Manchester United have registered an overall loss of £29million for the six months to December according to their latest financial figures. This major knock-out comes after a non-cash write-off of £48.8million. This registers as the biggest financial loss in eight years for the Red Devils. In 2010, United registered a third-quarter loss of £65.8million. So where does President Trump come in?
The reason for such a loss is USA President Trump’s new tax reform. Trump’s tax cuts have slashed America’s corporation tax rate from the highest to one of the lowest. Furthermore, this reform affected United despite paying a minor fraction of their taxes in the US. But despite the loss registered, United’s chief financial officer, Cliff Baty, calmed the situation down with a brief explanation.
“It should be beneficial to the club in the long-term.
“It’s important to reiterate that it’s a non-cash accounting charge only which has no impact on our financial competitiveness or our ability to meet Financial Fair Play regulations.”
On the other hand one must surely mention the fact that Manchester United‘s overall revenue rose by 4%. This comes despite the fact that commercial, sponsorship and match day revenue went slightly down.