Manchester United announced that its debt has risen to almost $580 million by 2022. This represents an increase of 22%, over $100 million, compared to last year’s figures. The deadlines for these fiscal years run from the beginning of June to the end of July.
Along with this massive increase in debt, the Red Devils also reported a $130 million net loss for the 2021/22 campaign. This is despite the fact that revenue was actually up 18%. The $657 million in revenue did not make up for Manchester United’s reckless spending.
Manchester United CFO Cliff Baty claimed that the COVID-19 pandemic was a major cause of the dismal numbers.
“Our financial results for fiscal 2022 reflect a recovery from the pandemic, a full return of fans and new business partnerships offset by increased investment in gaming equipment,” Baty said.
“Our results have been negatively affected by the absence of a summer tour in July 2021, exceptional and increased utility costs, and the impact of the weakening of the pound sterling on our non-cash financing costs.”
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Manchester United accumulates debt
Manchester United had a net spend of around $120 million during the 2021 summer transfer window. This includes significant transfer fees for Jadon Sancho, Raphael Varane and Cristiano Ronaldo. However, although they shelled out a huge amount of money on transfer fees, the team’s wage bill was perhaps hit the hardest by the moves.
The hiring of the aforementioned trio increased the salaries of the club’s players by more than 19%. United’s salary bill now stands at $433 million. That would be the highest salary for a Premier League team in history. Crosstown rivals Manchester City previously held the record with $400 million in salary.
Along with wages, United’s debts were also affected by the sackings of Ole Gunnar Solskjær and Ralf Rangnick. The two managers were fired during the last fiscal year and cost the club a combined $28 million.
Although these figures are staggering, the club’s chief executive, Richard Arnold, is not worried. “Our club’s primary mission is to win soccer games and entertain our fans,” Arnold proclaimed.
“Since our last earnings report, we have strengthened 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 coach Erik ten Hag.”
PHOTO: IMAGO / Sportimage
