Even with revenues increasing by 18% to £583m, Manchester United have reported a net loss of £115.5m for the 2021–2022 season.
According to data that included the final quarter of their financial year, which concluded in June, losses increased by £23m from the prior year.
ℹ️ A word from our CEO, Richard Arnold, on the ongoing developments at Manchester United.#MUFC
— Manchester United (@ManUtd) September 22, 2022
The club’s net debt increased as well, rising from £419.5m in 2021 to £514.9m this year, a rise of more than 22%.
This increase of £95.4m, according to United, is principally attributable to £64.6m of unrealized foreign exchange losses on the retranslation of borrowings in United States dollars. A £89.1m increase in revenue was however recorded.
What Did Man United Officials Say?
According to chief financial officer Cliff Baty: “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.”
Meanwhile, chief executive Richard Arnold said: “Our club’s core mission is to win football matches and entertain our fans.”
Wages increased by 19.1% (£61.6m) to £384.2m as a result of the signings last summer. Players like Cristiano Ronaldo, Jadon Sancho, and Raphael Varane were signed by the club.
This is the largest number in Premier League history, breaking Manchester City’s previous record of £355m.
“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.
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“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.
“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.”
The club expects overall revenue for the 2022–2023 year to be in the range of £580–600m. Furthermore, it aims to achieve adjusted core profit of between £100–110m.
That is despite the team’s failure to qualify for the Champions League this season.
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