Why Manchester United wage bill went down by £50million last season

Manchester United slashed £50million off their wage bill in the 2022/23 season, according to figures released in their annual accounts.

United posted record full-year revenues of £648.4m, up 11 per cent, for the year ending June 30, 2023. Their commercial revenues exceeded £300m for the first time, rising to £302.9m but their overall cash flow dropped by £45.2m and their long-term debt remains at $650m (£538.2m).

The impressive revenues came in a season in which United played in the Europa League and that is partly why their wage bill fell to £331.4million, a decrease £52.8million, or 13.7%.

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With wage cuts when United miss out on Champions League football written into contracts, it means salaries will always be reduced in a campaign outside of Europe's elite. But squad turnover also plays a part and one significant element of the wage bill falling last season was the departure of Cristiano Ronaldo, the squad's higher earner, in November.

Ronaldo had already fallen out with Erik ten Hag when he gave his explosive and unauthorised interview to Piers Morgan, which led to his contract being terminated by mutual consent.

Once again the Glazers did not take a dividend for the year ending to June 30, 2023, while there was no investor call as the club wait on the end of the strategic review process, which looks set to conclude with Sir Jim Ratcliffe's INEOS group taking a 25% stake in the club at a cost of £1.3bn.