Man Utd finances: Club announces big net loss as overall debt smashes through £500million mark
Manchester United has revealed a net loss of £115.5 million for the 2021-22 season, despite revenue increasing by 18% to £583 million.
Losses increased by £23 million over the previous year, according to figures disclosed for the final quarter of their fiscal year, which concluded in June.
The club’s net debt increased by more than 22%, rising from £419.5 million in 2021 to £514.9 million this year.
United attributed the £95.4 million increase to unrealized foreign exchange losses on the retranslation of US dollar borrowings.
Revenue increased by £89.1 million, while United distributed £33.6 million in dividends to shareholders.
“Our fiscal 2022 financial results represent a recovery from the epidemic, the full return of fans, and new commercial partnerships offset by additional investment in the playing team,” said chief financial officer Cliff Baty.
“Our results have been harmed by the absence of a summer tour in July 2021, substantial extraordinary and increasing utility costs, and the impact of sterling weakness on our non-cash finance costs.”
Wages increased by 19.1 percent as a result of the additions of Cristiano Ronaldo, Jadon Sancho, and Raphael Varane last summer, bringing the total to £384.2 million.
United has set a new wage record.
This is the largest number in Premier League history, breaking Manchester City’s previous record of £355 million.
“Our club’s main objective is to win football matches and excite our fans,” CEO Richard Arnold remarked.
“Since our last profits report, we have improved our men’s first team roster, conducted a successful summer tour, and laid the groundwork for a strong start to the 2022-23 season under our new manager Erik ten Hag.”
“We have also continued to improve our women’s team in order to consolidate our position among the top clubs in the Women’s Super League.”
“While there is much more work to be done, everyone at the club is focused on delivering consistent success on the field and a sustainable business model off the field, to the mutual benefit of fans, shareholders, and other stakeholders.”
