The latest financial figures published by Manchester United revealed that the return of Cristiano Ronaldo last summer helped the club achieve a new milestone by topping the Premier League’s highest wage bill in history.
On Thursday, September 22, United posted its latest financial figures, indicating an increase in the club’s net debt.
Ronaldo, who is the highest-paid player at Manchester United with reported wages of around £500,000-a-week, contributed to the club’s significant wage expenditure. Following the arrivals of high-profile players such as Ronaldo, Jadon Sancho, and Raphael Varane, the club’s wage bill has surged to £384.2 million, marking a 19.1% increase from its previous figures.
Under the new manager Erik ten Hag, United’s wage bill further rose due to the summer signings of five new players, including Antony for £85.5 million, Casimiro for £70 million, and Lisandro Martinez for £56.7 million. However, several high-earning players such as Paul Pogba, Nemanja Matic, Edison Cavani, and Juan Mata departed from Old Trafford during the same period.
Additionally, United announced a net loss of £115.5 million for the 2021/22 season, despite an 18% increase in revenues to £583 million.
Incorporating the final quarter of their financial year, which ended in June, the figures revealed a £23 million rise in losses compared to the previous year.
Furthermore, the club’s net debt escalated from £419.5 million in 2021 to £514.9 million this year, marking an increase of over 22%.
Meanwhile, pay-offs to former managers Ole Gunnar Solskjaer and Ralf Rangnick, along with their coaching staff, amounted to £24.7 million.
Speaking at a conference call with investors, chief executive Richard Arnold emphasized the club’s commitment to improving the team and reclaiming its top position.
“Our club’s core mission is to win football matches and entertain our fans,” stated 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.
“Clearly our on-pitch performance in finishing sixth in the Premier League last season fell short of our aims and expectations.
“In response, we have made important and necessary changes, including new leadership for the men’s first team under Erik ten Hag and the strengthening of the playing squad during the summer transfer window.”
United’s chief financial officer, Cliff Baty, addressed the club’s overall debt by stating, “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.
“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.”
