Manchester United has announced a loss of £115.5 million for the 12 months ended June 30, 2022, even though revenues rose 18% to £583.2 million.
The £115.5 million loss compared to a £92.2 million in the prior year.
The club said its net debt as of June 30, 2022, was £514.9 million, an increase of £95.4 million “primarily due to £64.6 million of unrealized foreign exchange losses on retranslation of USD borrowings in addition to a further drawdown on our revolving facilities of £40.0 million, partially offset by a £10.5 million increase in cash and cash equivalents.”
It said broadcasting revenue for the year fell 15.7% to £214.9 million “primarily due to playing twenty-two fewer home and away games across all competitions compared to the prior year.”
Commercial revenue rose 11% to £257.8 million.
Matchday revenue was £110.5 million, an increase of £103.4 million, or 1456.3%, over the prior year, due to the return of fans to Old Trafford.
Total operating expenses rose 28.6% to £692.6 million.
Employee benefit expenses were £384.2 million, an increase of £61.6 million, or 19.1%, over the prior year, “due to investment in the first team playing squad.”
Exceptional items for the year were a cost of £24.7 million. “This cost includes compensation due to former men’s first team managers, certain members of the playing, coaching and scouting staff, and certain non-playing staff,” said Manchester United.
“The cost also includes additional contributions we expect to pay towards the Football League pension scheme deficit based upon the latest actuarial valuation. Exceptional items for the prior year were £nil.”
In its outlook, Manchester United said that for fiscal 2023, the company expects total revenues to be in a range of £580 million to £600 million, despite participation in the Europa League, and adjusted EBITDA to be in a range of £100 million to £110 million “reflecting the continued playing squad investment.”
Manchester United CEO Richard Arnold said: “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.
“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.”
Manchester United Chief Financial Officer Cliff Baty 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.”