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Manchester United have reported that they ended the 2021-22 season with an overall net loss of £115.5 million. This is a £23 million increase from last year's loss, even though the club saw their revenues rise to £583 million, approximately 18% from the previous year.
The club also saw their net debt increase by 22 percent, from £419.5 million last year to £514.9 million this year.
The cost of sacking Ole Gunnar Solskjaer and Ralf Rangnick, including their coaching staff, came to £24.7 million. While Solskjaer was sacked in November 2021, Rangnick left Old Trafford at the end of last season after he was expected to assume a consultancy role.
Speaking about Manchester United's losses amounting to £2 million per week through last season, the club's Chief Financial Officer Cliff Baty explained (via Sky Sports):
"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."
Manchester United notably signed players like Raphael Varane, Cristiano Ronaldo, and Jadon Sancho last season. This saw their wage bill rise by 19.1 percent (£61.6 million) to hit a record-breaking £384.2 million. This is higher than the Premier League record previously set by their local rivals Manchester City, who had a wage bill of £355 million.
Manchester United CEO explains how the club broke the Premier League wage record
While the massive net loss has been a shocking revelation, Manchester United Chief Executive Richard Arnold explained that the focus has been on strengthening the club (via Sky Sports):
"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.
"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."
