Manchester United has seen a significant increase in its wage bill this season due to the team’s participation in the Champions League, concurrently nearing a club record in revenue.
Last season, Manchester United’s wage bill stood at $491 million USD but has surged by $121 million USD to over $600 million USD this season.
This substantial increase is attributed to Manchester United’s qualification for the Champions League after finishing third in the previous Premier League season, thereby nullifying the clause that would have imposed a 25% reduction in income for all players if the club failed to participate in the continent’s premier competition. However, their wage bill may experience a sharp decline next season as Manchester United currently sits sixth in the Premier League, trailing fourth-placed Aston Villa by eight points.
Meanwhile, Manchester United continues to approach record revenue figures and persists in not distributing dividends to its owners, the Glazer family. Last season, according to financial reports spanning from July 2022 to June 2023, Manchester United achieved revenue of $786.5 million USD, surpassing the record of $760.7 million set in 2019 but still incurring a loss of $51 million USD.
In the current fiscal year, from July 2023 to June 2024, as per Chief Financial Officer Cliff Baty, Manchester United has recorded high revenue in the first half of the year and is aiming for a record-breaking full-year figure, estimated to be between $812 million and $850 million USD. Similar to the previous year, Manchester United will not be distributing dividends to the Glazer owners.
According to Manchester United’s latest figures, the club’s commercial revenue decreased by $8.8 million USD, while sponsorship revenue also decreased by 22%. However, retail revenue increased by 15.2% due to the extension of agreements with Adidas and the effectiveness of brand activities. Additionally, participation in the Champions League, despite the team being eliminated in the group stage, has still generated significant income for the club from this arena.
Manchester United’s debt, related to leveraged buyouts by the Glazers, remains at $650 million USD, with net debt, including repayments of revolving credit, totaling $908 million USD.