Manchester United wage bill falls by 20 per cent
Manchester United’s wage bill dropped more than 20 per cent, compared with 12 months ago, following the club’s failure to qualify for the Champions League and the acrimonious departure of Cristiano Ronaldo.
Erik ten Hag’s club announced their quarterly figures on Thursday, showing a net profit of £6.3 million, despite a World Cup-related fall of nearly 10 per cent in revenue, compared with the same September-December period in 2021.
The “employee benefit expenses” for the period reveal that United staff earned £77.3 million in the final three months of 2022.
That represents a drop of £20.4 million, or 20.9 per cent, compared with the same three months a year earlier.
Ronaldo, who was paid a reported £500,000 a week during his ill-fated return to Old Trafford, and Paul Pogba, were both on United’s wage bill for the full second quarter last season.
But the bulk of the 20 per cent wage cuts can be explained by United’s failure to qualify for the Champions League under Ralf Rangnick last season, a result that activated clauses requiring a wage cut for most of the United first-team squad.
Compared with the first quarter of the current season – a period spanning July-September 2022 – the wage bill has dropped from £82.3 million, a reduction of £5 million.
The latest figure covers six weeks after which Ronaldo had left United, accounting for £3 million of that fall.
Other headlines in the latest accounts centre on United’s gross debt which has “risen” by nearly £60 million, to £535.7 million.
That dramatic climb, however, is purely the result of exchange rate fluctuations, and a weakened pound, with the overall debt remaining steady at $650 million in US currency.
That debt has been one of the main complaints about the reign of owners the Glazer family, who are currently listening to bids for the club, although there is no reference to the possible sale in the latest report and no comments from chief executive officer Richard Arnold in the accompanying press release.
Overall, United’s net profit of £6.3 million for the last quarter was achieved, despite a year-on-year drop of 10 per cent in revenue to £167.3 million; a fall attributed to failure to qualify for the Champions League plus the World Cup break offering them two fewer home games in 2022 than in 2021.
The World Cup break and Champions League failure also account for a 32 per cent drop in broadcast revenues and 13 per cent fall in match-day income.
On the plus side, however, United have reported a 22 per cent rise in commercial revenue, raising £78.7 million for the latest three-month period, figures driven by a new training kit sponsorship deal.
