Manchester United have revealed yearly financial results which show their already-massive debit has increased even further. The Red Devils also made a net loss of 115 million pounds last season.
The club did increase their overall revenue by 18 percent, but they also saw their wage bill rise by 19.1 percent. The signings of Cristiano Ronaldo, Jadon Sancho and Raphael Varane contributed heavily to that.
That increased wage bill surpassed even Manchester City‘s salary total and was the most expensive squad in terms of wages in Premier League history. All that for a team that finished sixth in the league.
The poor yearly results mean that United‘s debt now stands at 514 million pounds, a whopping figure that is up 22 percent from the year before.
Why are Manchester United in huge debt?
The club have tried to downplay the negative numbers by putting the poor financial results down to a COVID hangover and the lack of a pre-season tour in 2021.
They point to signs of recovery, but losses of two million pounds per week are hard to view as encouraging.
Meanwhile, club CEO Richard Arnold preferred to look to the future, pointing out the recent summer tour, which will show in next year’s figures.
“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.”
While the club predict better results for this season, it must be remembered that the club will not be competing in the Champions League and will thus not be able to rely on that revenue.
Meanwhile, United supporters have been critical of the financial results and the club’s owners.
Supporters’ group MUST has pointed out that despite dreadful figures and poor sporting performances, the Glazers were the only Premier League owners last season to pay themselves a dividend.