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

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.

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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".

The club also paid out dividends totalling £33.6million during the year, mostly to the Glazer family. United expect to post revenues of £580million to