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Even though the club’s sales increased by 18% to £583 million, Manchester United reported a net loss of £115.5 million ($130.4 million, 132.2 million euros) for the 2021/22 season on Thursday.
According to data made public, the 20-time English champions’ losses increased by £23 million from the previous year over the last three months of their fiscal year, which concluded in June.
Additionally, the club’s net debt rose from £419.5 million in 2021 to £514.9 million this year, a more than 22% increase.
Unrealized foreign exchange losses on the retranslation of borrowings in US dollars were mostly to blame for this increase, according to United.
London, United Kingdom | AFP | Thursday 9/22/2022 – 17:53 UTC+5 | 276 words
Manchester United announced Thursday a net loss of £115.5 million ($130.4 million, 132.2 million euros) for the 2021/22 season even though revenues at the club rose by 18 percent to £583 million.
Figures released incorporating the final quarter of the 20-time English champions’ financial year, which ended in June, showed losses rose by £23m on the previous year.
The club’s net debt also increased from £419.5 million in 2021 to £514.9 million this year, an increase of more than 22 percent.
United attributed that rise mainly to unrealised foreign exchange losses on the retranslation of borrowings in US dollars.
“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.”
With their lowest point total since the Premier League replaced England’s First Division in 1992, United concluded the 2021–2022 Premier League season in sixth position.
United’s future financial situation will also suffer if they don’t make the Champions League.
Instead, in their inaugural campaign under new manager Erik ten Hag, they are engaged in the less lucrative Europa League.
As their hunt for their first major title since 2017 continued, United finished 13 points behind fourth place and 35 points behind Premier League champions Manchester City.
They have played six games compared to seven for the Gunners, yet they are still fifth, six points behind early-season leaders Arsenal.
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