Manchester United’s £384.2 Million Salary Expenditure Set A New Record For The Premier League
According to the most recent financial data released by the club, Cristiano Ronaldo’s return to Manchester United last summer contributed to the club setting a new record for the largest wage bill in Premier League history.
On September 22, United released their most recent financial data, which also revealed an increase in the club’s net debt.
With reported wages of around £500,000 per week, Ronaldo is the highest-paid player at Manchester United. Since his arrival there last season, Manchester United has risen far above other EPL clubs as their wage expenditure increased to £384.2m, a 19.1% increase over their prior figures, thanks to the high-profile signings of Ronaldo, Jadon Sancho, and Raphael Varane.
In the summer of 2016, United signed five new players, including £85.5 million winger Antony, £70 million midfielder Casimiro, and £56.7 million centre-back Lisandro Martinez. However, a number of high-paid players, including Paul Pogba, Nemanja Matic, Edison Cavani, and Juan Mata, also left Old Trafford during that time.
United also disclosed a net loss of £115.5 million for the 2021/22 season, despite an 18% increase in revenue to £583 million.
According to data that included the final three months of their fiscal year, which concluded in June, losses increased by £23 million from the prior year.
The club’s net debt increased as well, rising from £419.5 million in 2021 to £514.9 million this year, a gain of more than 22%.
Payouts to the old coaching staff, including Ralf Rangnick and Ole Gunnar Solskjaer, totaled £24.7 million.
Richard Arnold, the club’s chief executive, stressed that the entire organization is committed to helping the team get better and get to the top.
“Our club’s core mission is to win football matches and entertain our fans,” Arnold said in a conference call with investors.
“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.
“Clearly our on-pitch performance in finishing sixth in the Premier League last season fell short of our aims and expectations.
“In response, we have made important and necessary changes, including new leadership for the men’s first team under Erik ten Hag and the strengthening of the playing squad during the summer transfer window.”
Cliff Baty, United’s chief financial officer, adding, with regard to the club’s overall debt,“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.”