Manchester United have announced a net loss of £115.5million for the 2021-22 season even though revenues rose by 18 per cent to £583m.
Figures released incorporating the final quarter of their financial year, which ended in June, showed losses rose by £23m on the previous 12 months. The club's net debt also rose, from £419.5m in 2021 to £514.9m this year, an increase of more than 22 per cent.
United put that rise of £95.4m primarily down to £64.6m of unrealised foreign exchange losses on the retranslation of borrowings in United States dollars. Revenue rose by £89.1m, while United paid out £33.6m in dividends to shareholders.
"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."
As a result of the signings last summer of the likes of Cristiano Ronaldo, Jadon Sancho and Raphael Varane wages leapt by 19.1 per cent, a rise of £61.6m to £384.2m. That figure is the highest in Premier League history, surpassing the previous mark set by Manchester City (£355m).
"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."
