Manchester United have announced a net loss of £115.5million for the 2021/22 season.
Manchester United have released the club’s financial figures for the 2021/22 season and it has definitely raised some eyebrows. The Red Devils have announced a net loss of £115.5million for the 21/22 season.
According to the same report, their revenue has risen by 18 percent compared to the last year and it stood at £583m. Club’s net debt has also increased by 22 percent.
“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,” said chief financial officer Cliff 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.”
The club has also broken the wage bill record by surpassing the previous £355million mark set by rivals Manchester City. United’s current wage bill adds up to an astounding figure of £384.2million.
“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.”
There are various reasons of incurring such a heavy loss, one of them being the pay offs done to Ole Gunnar Solskjaer and Ralf Rangnick during their sacking, which reportedly amounted to £24m.
Manchester United faithful have always stood up against the ownership of Glazer family, and it’s the same case this time around. Fans are blaming the Glazers for this fiscal situation at the club.
“Today’s financial results from United cover a period when the club failed on the pitch, finishing sixth in the Premier League with our worst points tally in decades,” said a MUST statement.
“Despite that, the results confirm that the owners were the only ones in the Premier League to pay themselves a dividend last year.
“There is nothing wrong in principle with companies paying dividends to owners but there should be no rewards for failure and that is what we see here.
“At a football club we believe dividends should only be paid when there is both financial success and success on the field.
“Via the Fans Advisory Board and the Fans Forum, MUST representatives will now be calling for an urgent review of the club dividend policy to ensure that the rewards for failure we see revealed today are not repeated.
“Overall, this set of results reinforces our view that the club is in dire need of new capital investment and the proposed stadium redevelopment must be funded through new issuance of shares to bring new funds into the club and not via more debt which would place a further drain on club finances.”