Manchester United announced a net loss of £115.5m for the 2021/22 season despite revenue rising 18 per cent to £583m.
Figures for the last quarter of the financial year, which ended in June, showed losses rising by £23m from the previous year.
The club’s net debt has also risen, from £419.5m in 2021 to £514.9m this year, an increase of more than 22 per cent.
United put this £95.4m rise primarily down to £64.6m of unrealized foreign exchange losses on reconverting loans into US dollars. Revenue increased by £89.1 million.
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“Our financial results for fiscal year 2022 reflect the recovery from the pandemic, the full return of fans and new business partnerships offset by increased investment in the team,” said Chief Financial Officer Cliff Baty.
“Our results were negatively impacted by the absence of a summer tour in July 2021, extraordinary material and utility costs increases, and the impact of a weaker sterling on our non-cash funding costs.”
The main mission of our club is to win football matches and entertain our fans.
As a result of last summer’s signings of the likes of Cristiano Ronaldo, Jadon Sancho and Raphael Varane, wages jumped 19.1 per cent, up £61.6m to £384.2m.
This figure is the highest in the history of the Premier League, surpassing the previous figure set by Manchester City (£355m).
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“The primary mission of our club 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, completed a successful summer run, and laid a foundation to build in the early stages of the 2022/23 season under our new coach, Erik ten Hag.
“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 Premier League.
“While there is a lot of work to be done, everyone at the club is aligned with a clear strategy for sustainable success on the pitch and a sustainable economic model for the mutual benefit of fans, shareholders and other stakeholders.”
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The bonuses for coaches Ole Gunnar Solskjaer, who was sacked in November, and Ralf Rangnick, who was not in a consulting position for two years at the end of the season after initially taking temporary charge, and their associated coaching staff, were £24.7. M.
The club expects total revenue for the 2022/23 period to be between £580m and £600m, and targets adjusted base profit between £100m to £110m.
This is despite the team’s failure to qualify for the Champions League this season.
Glazer accused of rewarding failure
The Manchester United Supporters Trust claims the Glazers are rewarding the failure at Old Trafford after sharing a profit of £33.6m despite the club announcing a £115.5m loss.
“United’s financial results today cover a period in which the club failed on the pitch, finishing sixth in the Premier League with the worst points tally in decades,” a MUST statement said.
“The results nonetheless confirm that the owners are the only ones in the Premier League who have paid themselves a dividend last year.
“There is nothing wrong in principle with companies paying dividends to owners but there should be no rewards for failure and that’s what we see here.
“At a football club, we believe profits should only be paid when there is financial success and success on the pitch.
“Via the Fan Advisory Board and Fan Forum, representatives of MUST will now call for an urgent review of the club’s dividend policy to ensure that the rewards for failure we see today are not repeated.
“Overall, this set of results reinforce our view that the club is in dire need of new capital investment and the redevelopment of the stadium should be financed through the issuance of new shares to bring in new money to the club rather than by further debt which would put further drain on the club. The club’s financial resources.