HomeEuropeManchester United posts financial loss despite record revenues

Manchester United posts financial loss despite record revenues

Manchester United posts financial loss despite record revenues

Manchester United, the storied heavyweight of the English Premier League, announced a financial loss for the 2022-23 season, despite achieving record-breaking revenues.

Although it generated a staggering £648.4 million ($784 million) in revenue during the last season, which saw United finish third in the EPL and win the League Cup, the club posted a loss of £28.7 million.

It is worth noting that this loss is significantly lower than the £115.5 million loss reported for the 2021-22 season.

The financial results for the 2022-23 season were unveiled today, marking the first financial report since Qatar’s Sheikh Jassim withdrew his bid to purchase the club from the current owners, the Florida-based Glazer family. This withdrawal paves the way for British billionaire Sir Jim Ratcliffe, owner of petrochemicals giant Ineos, to negotiate for a 25 percent stake in the club.

In terms of revenues, the previous high was set in 2018-19 at £627 million, making the figure for the last season an impressive 11 percent increase from 2021-22.

The substantial rise in the club’s commercial revenues played a pivotal role in this growth, with the commercial sector contributing over £300 million to the club’s income for the first time, reaching £302.9 million. This marks a remarkable 17.5 percent year-on-year increase.

Sponsorship income amounted to £189.5 million, while retail, merchandise, apparel, and products brought in £113.4 million.

Matchday revenue also saw a notable increase, rising by 23.4 percent to £136.4 million. United played a greater number of matches at their 75,000-capacity Old Trafford stadium during the 2022-23 season compared to the previous year. This increase in matchday revenue can be attributed to better performances in various cup competitions, leading to seven more games played at Old Trafford in comparison to the 2021-22 season.

On the flip side, broadcast revenue decreased by 2.7 percent to £209.1 million. This was a result of Manchester United’s participation in the UEFA Europa League, a second-tier European competition, rather than the top-tier UEFA Champions League.

The club’s earnings before interest, taxation, depreciation, and amortisation (EBITDA) amounted to £154.9 million, marking an impressive 91 percent increase from the 2021-22 figure of £81.1 million.

For the second consecutive year, no dividends were distributed from the club, while Manchester United’s total debt stands at $650 million.

Employee benefit expenses, primarily player salaries, totalled £331.4 million.

United have endured an underwhelming start to their 2023-24 campaign on the field, sitting eighth in the EPL after losing four of their opening nine games, and going down in two of their first three UEFA Champions League group-stage matches.

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