Manchester United have announced a net loss of £115.5m for the 2021/22 season despite an 18% increase in revenue to £583m.
Figures released incorporating the final quarter of the financial year ended June show a £23m increase in losses compared to the previous year.
The club’s net debt also increased by more than 22% to £514.9m this year from £419.5m in 2021.
United attributes the £95.4m increase to an unrealized foreign exchange loss of £64.6m primarily from the retranslation of borrowings into US dollars. Earnings he increased by £89.1m.
Manchester United lost £2million in a week last season
Chief Financial Officer Cliff Beatty said: “Fiscal year 2022 results reflect a recovery from the pandemic, the full return of fans and new commercial partnerships offset by increased investment in our team. .
“Our results were adversely affected by the absence of our summer tour in July 2021, material anomalies and increased utility costs, as well as the impact of the weaker pound on our non-cash financial costs.”
Our club’s main mission is to win football matches and entertain our fans.
Wages rose by 19.1% from £61.6m to £384.2m following the signing of Cristiano Ronaldo, Jadon Sancho and Rafael Varane last summer.
The figure is the highest in Premier League history and surpasses the previous mark set by Manchester City (£355m).
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“Our club’s primary mission is to win football matches and entertain our fans,” said CEO Richard Arnold.
“Since our last earnings report, we have strengthened our men’s first team squad, completed a successful summer tour and built the foundations to build from the early stages of the 2022/23 season under new manager Erik Ten Hug. was established.
“We have also continued to develop our women’s team with the aim of strengthening our position among the leading clubs in the Women’s Super League.
“There is still a lot of work to do, but for the mutual benefit of fans, shareholders and other stakeholders, everyone at the club will achieve sustained success on the pitch and a sustainable economic model off the pitch. We are united along a clear strategy to do so.”
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Remuneration for Ole Gunnar Solskjaer, who was sacked in November, and Ralf Rangnick, who declined a two-year consultancy at the end of the season, and their associated coaching staff, rose to £24.7. m.
The club expects total revenues for the 2022/23 period to be between £580m and £600m, with an adjusted core profit target of between £100m and £110m.
That’s despite the team failing to qualify for the Champions League this season.
Glazer accused of rewarding failure
The Glazer family pays for their failure at Old Trafford after distributing a £33.6m dividend despite the club’s £115.5m loss, the Manchester United Supporters Trust says claims.
“Today’s results for United cover a period of failure for the club on the pitch, finishing sixth in the Premier League with their worst goalscoring streak in decades.
“Nevertheless, the results confirm that the owner was the only player to pay a dividend in the Premier League last season.
“In principle there is nothing wrong with companies paying dividends to their owners, but there should be no rewards for failure and that is what we see here.
“Football clubs believe that dividends should only be paid when there is both financial and on-field success.
“Through the Fan Advisory Board and Fan Forum, MUST representatives will seek an urgent review of the club’s dividend policy to ensure that the rewards for failures revealed today are not repeated.
“Overall, this set of results indicates that the club is in dire need of new capital investment and that the proposed stadium redevelopment will be financed through the issuance of new shares to bring new funding to the club. It confirms our view that there is a need to do so, further putting pressure on the finances of the club.”