Manchester United suffered their worst ever financial loss last year despite revenues rallying as supporters returned to stadiums following the pandemic.
United made a loss of £115.5m for the year ending June 2022, a further deterioration on the previous season’s record £92.2m loss.
Revenue increased 18 per cent to £583.2m thanks to the return of supporters to Old Trafford, which generated matchday income of £110.5m.
The Premier League club blamed the loss on a number of factors including significant investment in new players such as Cristiano Ronaldo and Jadon Sancho.
Ronaldo cost just £13m to buy from Juventus but is reported to have a salary of £25m a year.
United’s net debt also increased by almost 23 per cent to £514.9m
“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 United’s 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.”
The financial blow comes weeks after the club was engulfed in takeover rumours, with billionaire Sir Jim Ratcliffe suggesting he was willing to lead a buyout of owners the Glazer family.
However, speculation has faded as United’s results have improved under new manager Erik ten Hag, who arrived from Dutch side Ajax during the summer.
United also spent heavily on signings again in July and August, deals which are reflected in the club’s financial forecast for the current year.
Baty added: “Looking forward to fiscal 2023, the club is guiding to revenues of £580m to £600m despite participation in the Europa League, and adjusted EBITDA of £100m to £110m, reflecting the continued playing squad investment.”