Manchester United financing: Club announces big net loss as total debt crosses £500m mark
Manchester United posted a net loss of £115.5m for the 2021-22 season, despite an 18 per cent rise in revenue to £583m.
Figures released for the final quarter of their financial year, which ended in June, showed losses had risen by £23m over the past 12 months.
The club’s net debt has also increased, from £419.5m in 2021 to £514.9m this year, an increase of more than 22 per cent.
United primarily reduced this increase by £95.4m to £64.6m of unrealized foreign exchange losses from the translation of US dollar borrowings.
Revenues rose by £89.1m, while United paid out £33.6m in dividends to shareholders.
“Our financial results for fiscal 2022 reflect recovery from the pandemic, a full return to fans and new commercial partnerships offset by increased investment in player personnel,” said CFO Cliff Baty.
“Our results were adversely affected by the absence of a summer tour in July 2021, extraordinary material and energy costs and the impact of a weaker pound on our non-cash finance costs.”
Last summer, signings such as Cristiano Ronaldo, Jadon Sancho and Raphael Varane saw their wages rise by 19.1 per cent, an increase of £61.6m to £384.2m.
United set a new wage record
This figure is the highest in Premier League history and has surpassed the previous mark set by Manchester City (£355 million).
“The main mission of our club is to win football matches and entertain our fans,” said chief executive Richard Arnold.
“Since our last earnings report, we have strengthened the men’s first team squad, completed a successful summer tour and created a foundation to build on 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 to strengthen our position among the leading clubs in the Women’s Super League.
“While there is much more work ahead, everyone at the club is committed to a clear strategy that will ensure continued success on the pitch and a sustainable economic model off it, for the mutual benefit of fans, shareholders and other stakeholders.”
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