Manchester United debt rises to nearly $580 million
Manchester United announced that its debt has risen to nearly $580 million for 2022. This represents a 22% increase, over $100 million, compared to last year’s figures. Timeframes for these fiscal years run from the beginning of June to the end of July.
Along with this massive debt increase, the Red Devils also declared a $130 million net loss for the 2021/22 campaign. This is in spite of the fact that revenues actually rose 18%. The $657 million in revenues did not offset Manchester United’s unwise spending.
Manchester United Chief Financial Officer Cliff Baty claimed the COVID-19 pandemic was a big cause for the bleak numbers.
“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,” stated 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.”
Manchester United accumulates debt
Manchester United had a net spend of about $120 million during the 2021 summer transfer period. This includes significant transfer fees for Jadon Sancho, Raphael Varane and Cristiano Ronaldo. However, while they shelled out major money on transfer fees, the team’s wage bill was perhaps most affected by the moves.
Signing the aforementioned trio increased the club’s player wages by over 19%. United’s wage bill is now a reported $433 million. That would be the highest wages by a Premier League team in history. Crosstown rivals Manchester City previously had the record with $400 million in salary.
Along with wages, United’s debts were also impacted by firing both Ole Gunnar Solskjær and Ralf Rangnick. The two coaches were both sacked during the last financial 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 core mission is to win football matches and entertain our fans,” proclaimed 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.”
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