Manchester United have posted record revenues but still made a loss for the 2022-23 season.
The club brought in £648.4million ($784m) for the last campaign, a rise of 11 per cent on 2021-22, which beats the previous high of £627m set in 2018-19.
This new figure was set despite United competing in the Europa League, which comes with smaller broadcast payments than the Champions League. United’s commercial growth was a major factor, jumping past the £300m mark for the first time to £302.9m, an increase of £45.1m (17.5 per cent) on the year previous.
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A higher number of matches at Old Trafford also helped, with United benefiting from exclusive home draws in the domestic cup competitions. Erik ten Hag’s side played seven more games at home than the previous season, seeing matchday revenue rise by £25.9m (23.4 per cent).
Despite these increased numbers, United still made a loss for the period of £28.7m. That total is significantly less, however, than the loss for 2021-22 of £115.5m.
Employee benefit expenses, mainly player salaries, were £331.4m, a decrease of £52.8m from the previous campaign, mainly due to cuts from not reaching the Champions League.
United’s long-term debt remains unchanged at $650m and, as in the previous year, no dividends were paid.
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Analysing Manchester United’s accounts: Record revenue, £28.7m loss, interest payments up
Analysis by Mark Critchley and Dan Sheldon:
The fact Manchester United posted record revenues and still made a loss sums up a lot about the club at the moment.
United’s ability to generate income, with £648.4million ($784m) coming into the club for the financial year ended June 30, remains something to be applauded, especially given their lack of on-field success over the past decade. But to still post a £28.7m loss, even if it is an improvement on the previous year’s £115.5m deficit, is indicative of the club’s inefficiency at almost every level.
Commercially, they are brilliant. When it comes to filling Old Trafford, there are no issues shifting tickets. They are even selling more football shirts than ever before. United’s ability to generate enormous revenues, even during an era with limited success, is so often the envy of other clubs in England and across Europe.
Yet debt and inefficiency, which stem from the Glazer family’s controversial ownership, are holding them back.
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Should Sir Jim Ratcliffe’s deal to purchase a minority 25 per cent shareholding from the Glazers go through, the British billionaire is not in business to lose money — and will almost certainly be looking at ways to turn the loss-making club into a profit-turning one.
How he plans to do that, however, is yet to become clear.
Read more below about what United’s latest set of accounts reveal about the club’s state of financial health.
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Analysing Manchester United's accounts: Record revenue, £28.7m loss, interest payments up
(Photo: Michael Regan/Getty Images)
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