Manchester United confirms huge net loss this season
Manchester United’s net loss for the 2021/22 season is £115.5 million, despite revenue increasing by 18% to £583 million.
According to figures released, losses increased by £23 million in the final quarter of their fiscal year, which ended in June.
The club’s net debt grew by more than 22% this year, rising from £419.5 million in 2021 to £514.9 million this year.
The £95.4 million increase was attributed to unrealized foreign exchange losses on the retranslation of US dollar borrowings. The company’s revenue increased by £89.1 million.
Manchester United lost £2 million per week last season.
“Our fiscal 2022 financial results reflect a recovery from the pandemic, the full return of fans, and new commercial partnerships offset by increased investment in the playing squad,” CFO Cliff Baty said.
“The absence of a summer tour in July 2021, material exceptional and increased utility costs, and the impact of sterling weakness on our non-cash finance costs have all harmed our results.”
Wages increased by 19.1 percent as a result of the summer signings of Cristiano Ronaldo, Jadon Sancho, and Raphael Varane, totaling £384.2 million.
This is the most money ever spent in the Premier League, breaking Manchester City’s previous record of £355 million.
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“The core 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 squad, completed a successful summer tour, and laid the groundwork for the early stages of the 2022/23 season under our new manager Erik ten Hag.
“We have also continued to invest in our women’s team in order to remain one of the top clubs in the Women’s Super League.
“While much more work remains to be done, everyone at the club is focused on delivering sustained success on the field as well as a sustainable economic model off the field, to the mutual benefit of fans, shareholders, and other stakeholders.”
The true cost of firing Ole and Rangnick payouts totaled £24.7 million for managers Ole Gunnar Solskjaer, who was fired in November, and Ralf Rangnick, who did not accept a two-year consultancy role at the end of the season after taking interim charge.
The club anticipates total revenue of £580m to £600m in 2022/23, with an adjusted core profit of £100m to £110m.
Despite the team’s failure to qualify for the Champions League this season.