Cristiano Ronaldo Jadon Sancho Raphael Varane Manchester Sancho Football loss Cristiano Ronaldo Jadon Sancho Raphael Varane Manchester Sancho

Why Manchester United have seen their net debt and operating loss increase

manchestereveningnews.co.uk

Manchester United's net debt has risen by £95million in their latest financial results, with the club blaming the increase on dealing with losses as a result of the Covid-19 pandemic.

The results for the year to June 30, 2022, saw net debt increase from £419.5million to £514.9million, a jump of 22.7%. But that rise is primarily down to the use of £100million on a 'revolving credit facility' to offset the £200million lost during the pandemic. READ MORE: Antony and Sancho must do for United what Pogba couldn't Included in the latest financial statement, United said: "Net debt as of 30 June 2022 was £514.9 million, compared to £419.5 million as of 30 June 2021, an increase of £95.4million primarily due to £64.6 million of unrealized foreign exchange losses on the 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." United have also seen their net loss rise to £115.5million for the year, with operating loss at £87.4million, a rise of 137% from the previous year.

That jump is down to an increase in player wages after a significant summer of transfer activity in 2021, with Jadon Sancho, Raphael Varane and Cristiano Ronaldo joining the club.

Employee benefit expenses for the year were £384.2 million, an increase of £61.6 million. United also spent £24.7million on exceptional items, which includes compensation paid to "former men's first team managers, certain members of the playing, coaching and scouting staff, and certain non-playing staff".

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