Despite reeling in record revenues, Manchester United has reported a financial loss for the 2022-23 season. The club's financial results, unveiled on Thursday, October 26, show a loss of £28.7 million, even after bringing in a record £648.4 million during the season. This loss, however, is significantly lower than the previous year's loss of £115.5 million.
These financial results are the first to be announced since Qatar’s Sheikh Jassim withdrew his bid to buy the club from the current owners, the Glazer family. This withdrawal has paved the way for British billionaire Sir Jim Ratcliffe, owner of petrochemicals giant Ineos, to negotiate for a 25% stake in the club.
The record revenues for the 2022-23 season represent an 11% rise from the previous year, surpassing the previous high set in 2018-19 (£627 million).
Revenue breakdown: Commercial and matchday revenues soar
A significant factor in this revenue rise was the growth in the club’s commercial revenues, which contributed over £300 million to the club’s income for the first time ever, hitting £302.9 million. This represents a 17.5% increase year-on-year.
- Sponsorship income: £189.5 million
- Retail, merchandise, apparel and product income: £113.4 million
Matchday revenue also saw a substantial increase, rising by 23.4% to £136.4 million. This was largely due to United playing a larger number of fixtures at their 75,000-capacity Old Trafford stadium during 2022-23 than the previous year. In total, the Manchester club played seven more games at Old Trafford than in 2021-22, thanks to better runs in various cup competitions.
However, broadcast revenue decreased by 2.7% to £209.1 million, as United competed in the UEFA Europa League as opposed to the UEFA Champions League.
Financial highlights and debt
The club’s earnings before interest, taxation, depreciation and amortisation (EBITDA) came to £154.9 million, marking an impressive 91% increase from the 2021-22 figure of £81.1 million.
No dividends were taken out of the club during 2021-22, and the club's total debt stands at $650 million. Employee benefit expenses, which mostly comprise player salaries, amounted to £331.4 million.
Despite the financial loss, the record revenues and significant growth in commercial and matchday revenues indicate a positive trend for Man Utd. The potential change in ownership could also bring new opportunities and challenges for the club. As the club navigates these changes, fans and stakeholders alike will be keenly watching the club's financial performance in the coming seasons.
On Sunday, fans in the UK can enjoy Manchester United's clash with arch-rivals Manchester City on Sky Sports. With nine matches in the books, eighth-placed United trail second-placed City by six points.
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