Man United announce £115m loss amid record wage bill and £515m debt

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Manchester United have announced a net loss of £115.5 million for the 2021-2022 season, although revenues have risen 18 per cent to £583 million.

Figures released for the last quarter of their fiscal year, which ended in June, showed losses increased by £23 million in the previous 12 months.

The club’s net debt also rose, from £419.5 million in 2021 to £514.9 million this year, a rise of more than 22 per cent.

United reduced that increase from £95.4 million primarily to £64.6 million in unrealized foreign exchange losses on the translation of loans into US dollars.

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Turnover increased by £89.1 million, while United paid £33.6 million in dividends to shareholders.

“Our fiscal 2022 financial results reflect a recovery from the pandemic, a full return of fans and new commercial partnerships, offset by increased investment in the playing team,” said CFO Cliff Baty.

“Our results were negatively impacted by the lack of a summer tour in July 2021, material exceptional and higher energy costs and the impact of the weakening sterling on our non-cash financing costs.”

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As a result of the purchases of players such as Cristiano Ronaldo, Jadon Sancho and Raphael Varane last summer, wages rose 19.1 per cent, up from £61.6m to £384.2m.

That figure is the highest in Premier League history, surpassing Manchester City’s previous figure (£355 million).

“Our club’s core mission is to win football matches and entertain our fans,” said CEO Richard Arnold.

“Since our last earnings report, we have strengthened the roster of our first men’s team, completed a successful summer tour and laid a foundation to build on 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 the aim of strengthening our position among the leading clubs in the Women’s Super League.

“While there is still much work to be done, everyone at the club is aligned with a clear strategy to deliver sustainable success on the pitch and a sustainable economic model off it, to the mutual benefit of fans, shareholders and other stakeholders.”

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