REVEALED: Manchester United lost £2m PER WEEK last season, despite the return of fans to Old Trafford, with a huge operating loss blamed on player wages – and club debt rising to infuriate fans
- Man United have revealed losses of £2m per week in figures from last season
- Red Devils reported a net loss of £115.5m for the season due to player wages
- Their net debt also increased by £95.4m amid anger at the Glazer owners
Manchester United’s net debt has shot up £95.4million to £514.9m over the last year, according to the club’s latest financial results.
The figure – a rise of 22.7 per cent from £419.5m – contributed to a net loss of £115m and reflects the impact of the pandemic after United were forced to access £100m of the club’s revolving credit facility to offset cash losses of £200m due to the Covid crisis. The club’s gross debt remains unchanged at close to £600m.
The club’s gross debt remains unchanged at close to £600m, but overall they lost around £2m per season despite the return of fans to Old Trafford following the Covid shutdown.
Overall, United’s total revenue was up to £583.2m from £494.1m as business returned to normal. Matchday revenue, in particular, rocketed from £7.1m to £110.5m following the return of fans.
However, total operating expenses for the year also rose £154.2m to £692.6m due to the increase in player wages following the signings of Cristiano Ronaldo, Jadon Sancho and Raphael Varane in the summer of 2021.
United also paid out £24.7m in ‘exceptional items’ which includes compensation to former managers Ole Gunnar Solskjaer and Ralf Rangnick as well as other members of the coaching staff.
The latest United financial figures showed a large 19.1 per cent increase in wages of £61.6m to £384.2m – as a result of the signings last summer of the likes of Cristiano Ronaldo, Jadon Sancho and Raphael Varane.
Manchester United supporters who have protested against the Glazer family’s ownership will not be happy to hear of a £95.4million rise in debt to £514.9m in the latest financial figures
The latest financial figures for the Old Trafford club showed losses of over £115million
That figure is the highest in Premier League history, surpassing the previous mark set by Manchester City (£355m).
United’s chief executive Richard Arnold said: ‘Our club’s core mission is to win football matches and entertain our fans. Since our last earnings report, we have strengthened our men’s first team squad, completed a successful summer tour, and established a foundation to build from in the early stages of the 2022-23 season under our new manager Erik ten Hag.
‘We have also continued to develop our women’s team with an aim of reinforcing our position among the leading clubs in the Women’s Super League.
‘Ultimately, we know that the strength of Manchester United rests on the passion and loyalty of our fans, which is why we have made fan engagement a strategic priority.
‘While there is a lot more work to do, everyone at the club is aligned on a clear strategy to deliver sustained success on the pitch and a sustainable economic model off it, to the mutual benefit of fans, shareholders, and other stakeholders.’
He added: ‘Clearly our on-pitch performance in finishing 6th in the Premier League last season fell short of our aims and expectations. In response, we have made important and necessary changes, including new leadership for the men’s first team under Erik ten Hag and the strengthening of the playing squad during the summer transfer window.’
United CEO Richard Arnold said the club were driven to deliver sustained success after the reveal of the figures
Cliff Baty, United’s chief financial officer, expects the club’s financial position to remain healthy despite dropping into the Europa League this season.
Baty said: ‘Our financial results for fiscal 2022 reflect a recovery from the pandemic, a full return of fans and new commercial partnerships offset by increased investment in the playing squad.
‘Our results have been adversely affected by the absence of a summer tour in July 2021, material exceptional and increased utility costs, and the impact of the weakening of sterling on our non-cash finance costs.
‘Looking forward to fiscal 2023, the club is guiding to revenues of £580m to £600m despite participation in the Europa League.’