Anchester United have reported a net loss of £115.5m for the 2021-22 season, despite an 18 per cent rise in revenue to £583m.
Published figures covering the final quarter of their financial year, which ended in June, showed losses widened by £23m on the previous 12 months. The club’s net debt also increased from £419.5m in 2021 to £514.9m this year, an increase of more than 22 per cent.
United attributed this £95.4m rise mainly to an unrealized foreign exchange loss of £64.6m from the translation of US dollar borrowings. Revenues rose by £89.1m, while United paid out £33.6m in dividends to shareholders.
“Our financial results for 2022 reflect the recovery from the pandemic, the full return of fans and new business partnerships, balanced by increased investment in the playing team,” said CFO Cliff Baty.
“Our results have been negatively impacted by the absence of a summer tour in July 2021, material one-offs and increased utility costs and the impact of the weakening sterling on our non-cash financing costs.”
Last summer’s signings of the likes of Cristiano Ronaldo, Jadon Sancho and Raphael Varane saw wages rise by 19.1 per cent, rising by £61.6m to £384.2m. This figure is the highest in Premier League history, surpassing the previous mark set by Manchester City (£355m).
“Our club’s main 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, completed a successful summer tour and created a foundation to build on in the early stages of the 2022-2023 season under our new manager Erik ten Hag.
“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 sustained success on the pitch and a sustainable business model that benefits fans, shareholders and other stakeholders.”