Man Utd announce rise in turnover for 2021/22 season but still record substantial loss
Manchester United raked in £583.2m during the 2021/22 season, marking an 18% rise on turnover from 2020/21 and a major step in the club’s recovery from the financial hit of the Covid-19 pandemic.
However, the club still recorded an operating loss of £87.4m and a net loss of £115.5m for the period, 12 months ended 30 June 2022.
Revenue has still not fully returned to the pre-pandemic levels last seen in 2019 when it reached a club record £627.1m. But the lack of a pre-season tour last summer due to ongoing concerns limited the 2021/22 results and the club is projecting revenue up to £600m for 2022/23.
A return to the much more financially lucrative Champions League rather than the Europa League, which the club is competing in this season, would also grow revenue in future.
In 2021/22, commercial revenue grew by 11%, while broadcasting revenue fell by 16%, affected by fewer home games and finishing sixth in the Premier League compared to second the season before. Matchday revenue, which had been almost completely wiped out by the pandemic grew nearly 1,500% from the previous campaign when fans were locked out of Old Trafford for all but one game.
Net debt stands at £514.9m. The increase of that sum by almost £100m from 12 months ago is explained as foreign exchange losses on a ‘retranslation’ of USD borrowing and a significant drawdown on the club's revolving credit facility.
United spent £24.1m on ‘exceptional items’ last season that included compensation to former managers, as well as certain members of the playing coaching and scouting staff.
"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," new chief executive Richard Arnold said.
"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.
"Ultimately, we know that the strength of Manchester United rests on the passion and loyalty of our fans, which is why we have made fan engagement a strategic priority.
"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."
Cliff Batty, the club’s chief financial officer, said, "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."
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