Manchester United Suffers Loss Of Over $50million

The world's most valued football team growing but recorded a net loss. Manchester United posted record revenue of $794 million (up 1.5% year over year in local currency) in the fiscal
year ending June, 2018 but had a net loss of $50 million (compared with a profit of $53 million in 2017, assuming the same exchange rate).The only soccer teams with more revenue than the English side are Barcelona ($1.09 million) and Real Madrid $892 million. But Barcelona’s figure includes player transfer profits, including the then record $237 million they got for Brazilian forward Neymar when he moved to Paris Saint-Germain during the summer of 2017. The red ink was due entirely to a non-cash expense. The team’s earnings release noted that “The US federal corporate income tax rate reduced from 35% to 21% following the substantive enactment of US tax reform on 22 December 2017. This necessitated a re-measurement of the existing US deferred tax position in the period to 31 December 2017. As a result the loss for the twelve months ended 30 June 2018 includes a non-cash tax accounting write off of £48.8 million ($66 million).” 

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