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- Manchester United has written off almost £50 million and Donald Trump is to blame.
- US tax cuts means United was forced to post a half-year loss of £29 million up to December 31.
- It is the club’s greatest financial loss in eight years.
Premier League giant Manchester United has been forced to write off £48.8 million ($67.9 million) – and the club say’s President Donald Trump is to blame.
United, the richest football club on the planet according to Deloitte, released its latest financial results on Thursday.
Because of US tax cuts imposed by Trump, United posted a half-year loss of £29 million up to December 31, 2017.
A note published in the club’s quarterly results explained: “The US federal corporate income tax rate has reduced. This necessitated a re-measurement of the existing US deferred tax position in the period to 31 December 2017.
“As a result the current quarter expense includes a non-cash tax accounting write off of £48.8 million.”
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Trump cut corporation tax to help boost the US economy, and United is just one of the worldwide companies it has affected.
It is the club’s greatest financial loss in eight years since it suffered a third quarter loss of £65.8 million in 2010.
Still, United’s chief financial officer Cliff Baty believes it has no long-term impact on the club.
“It should be beneficial to the club in the long-term,” Baty said in the Daily Mail. “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.”