In the era of globalization, it isn’t a surprise to see a sneeze in the West trigger a cold in the East.
Despite that, it is still bizarre to think that an act of President Donald Trump can adversely impact football giants Manchester United, and yet, that is precisely what has happened.
Late last year, Trump’s administration overhauled the US tax-system, which saw the corporate tax-rate cut from 35% to 21%. A result of this was that Manchester United, which is owned by the Glazer family of the US, had to make an accounting write-off of £48.8 million.
The club recorded a half-year loss of £29 million as a direct result of this write-off. The figure is also the first time in eight years that the account books of the Red Devils had to see red ink.
WATCH: What Lionel Messi did vs Valencia proves he can do anything he wants
Speaking about the issue, Chief financial officer Cliff Baty claimed: “(The tax changes) should be beneficial to the club in the long term; however, we are still working through the details of the potential impact of the more complex aspect of the reforms with our advisers.”
However, in what will be a relief to supporters, Baty also added: “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.”
The amount is certainly a staggering one considering that the club only pays a partial fraction of their taxes in the US, having also been listed on the New York Stock Exchange.
Regardless, it is a trend that has affected numerous companies around the globe, all in the firing range of Trump’s polarizing ‘America First’ economic policy.
But with recent financial moves, particularly the transfer of Alexis Sanchez from Arsenal and the subsequent shirt sales, United needn’t worry all too much, as this ought to be a slight bump on an otherwise uphill rise.