Manchester United’s wage bill continues to rise despite the club’s projected record revenue for the fiscal year.
The latest financial figures reveal a £95.1 million increase in staff costs, which has been attributed to their participation in the Champions League.
The club’s wage bill hit £384.1m last season – the highest in the Premier League.
The Red Devils are set to break their revenue record, with projections between £635-665m, but they still reported a loss of £42.1m last year.
However, Sir Jim Ratcliffe’s 25% stake acquisition in the club has injected some optimism for the future.
“We’ve delivered strong revenues and remain confident in achieving record figures for the full year,” United’s chief financial officer Cliff Baty said (via the Daily Mail).
“This is an exciting chapter with Sir Jim’s investment, and we’re committed to working together for on-field success.”
The report shows a dip in commercial and sponsorship revenue, while retail sales experienced a 15.2% increase.
The adidas deal extension and strong megastore performance fuelled the sales increase. The INEOS investment incurred transaction fees of £9.6m.
United boast revenue projections, but their historic debt of £508.1m stemming from the Glazer family’s takeover continues to hang over the club.
The net debt is up to £710m, and financial management is pivotal for the club’s future.
United must make tough decisions this summer to curb the ballooning bill. They must offload some of their big earners.
Casemiro, Anthony Martial and Jadon Sancho are all on hefty salaries and could be shown the exit door. United may also consider restructuring Raphael Varane’s contract to free up funds.
Player sales, an area where United have failed in the past, will be crucial. Sales will be essential to ensure financial sustainability and allow for potential reinforcements.
