Manchester United have announced a net loss of £115.5m for the 2021/22 season even though revenues rose by 18 per cent to £583m.
Figures released incorporating the final quarter of their financial year, which ended in June, showed losses rose by £23m on the previous year.
The club’s net debt also went up, from £419.5m in 2021 to £514.9m this year, an increase of more than 22 per cent.
United put that rise of £95.4m primarily down to £64.6m of unrealised foreign exchange losses on the retranslation of borrowings in United States dollars. Revenue rose by £89.1m.
Man Utd lost £2m per week last season
“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,” said chief financial officer Cliff Baty.
“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.”
As a result of the signings last summer of the likes of Cristiano Ronaldo, Jadon Sancho and Raphael Varane wages leapt by 19.1 per cent, a rise of £61.6m to £384.2m.
That figure is the highest in Premier League history, surpassing the previous mark set by Manchester City (£355m).
How club broke PL record for highest wages
“Our club’s core mission is to win football matches and entertain our fans,” said chief executive Richard Arnold.
“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.
“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 true cost of sacking Ole and Rangnick
Pay-offs to managers Ole Gunnar Solskjaer, sacked in November, and Ralf Rangnick, who did not take up a two-year consultancy role at the end of the season having initially assumed interim charge, and their associated coaching staff, amounted to £24.7m.
The club forecast total revenue for the 2022/23 period to be between £580m and £600m and is targeting adjusted core profit between £100m to £110m.
That is despite the team’s failure to qualify for the Champions League this season.