Manchester United’s Revenues Reveal Losses & Increase In Debt
Manchester United has posted a loss of £115.5m for the period up to 30th June 2022, their latest financial results show.
The loss is a 25% increase on the previous 12 months despite increases in commercial and matchday revenues.
The club’s Net Debt also increased £95.4m to £515.9m, the result of unrealized foreign exchange losses and other items.
However, total revenue for the year grew 18% to £583.2m with commercial revenues increasing 11% to 257.8m whilst matchday revenue jumped from £7m in the previous 12 months to £110m, the result of a full return of fans to Old Trafford.
Speaking of the results Manchester United Chief Executive Officer, Richard Arnold, commented: “Our club’s core mission is to win football matches and entertain our fans.
“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.
“Ultimately, we know that the strength of Manchester United rests on the passion and loyalty of our fans, which is why we have made fan engagement a strategic priority.
“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.”
The club’s total operating expenses for the year were £692.6m, an increase of £154.2 million, or 28.6%, over the prior year whilst employee benefit expenses 9including player wages) for the year were £384.2m, an increase of £61.6m, due to investment in the first team playing squad.
Despite the mixed financial fortunes, United’s executives remained optimistic at the outlook for the club with Cliff Baty, Chief Financial Officer, 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.
“Looking forward to fiscal 2023, the club is guiding to revenues of £580m to £600m despite participation in the Europa League, and adjusted EBITDA of £100m to £110m, reflecting the continued playing squad investment.”