Manchester United presented its financial fourth quarter (as of June 30) accounts on Thursday, and revenues of £583m represent top-line growth of 18 per cent on the same period last year.
The Red Devils, on the other hand, spent a lot of money on wages and the purchase of new star players such as Cristiano Ronaldo, Jadon Sancho and Raphael Varane. In fact, the club spent £384m on wages last year, up from £62m the previous season.
Highest salary in the Premier League
In total, the club paid out over £384 million to its players last year. It represents the highest salary in the entire Premier League. The previous record was set by Manchester City at £355m.
For example, Ronaldo earns NOK 293 million a year, corresponding to over NOK 5.5 million a week.
Much of the salaries of the footballers in United are also incentive-based, which means that the salaries would have been much higher if the team had performed better than what it did last season.
Dear Solskjær exit
The company also shelled out 24.7 million pounds – NOK 290 million – in extraordinary costs. Solskjær is said to have received 90 million in a severance package after he was fired in November last year. The remaining share of the costs was in connection with the departure of the replacement Ralf Rangnick after only two months in June. Ragnick was initially supposed to be associated with the club for two more years in a consulting role.
The costs of dismissing top management and coaches are significantly higher than in previous years.
In comparison, Jose Mourinho and his staff received £19.6m when he left in 2018. David Moyes received £5.2m when he was sacked in 2014, while Louis Van Gaal received £8.4m in 2016.
Owners took large dividends
United is owned by the American Glazer family, who have given the club a lot of negative attention over the years. The background is the massive debt that the family has incurred on the football club. Last year was no exception and the net debt of the company increased by 95.4 million to 514.9 million pounds.
Despite billions in losses, the family chose to withdraw £33.6 million in dividends.
In August, however, there were rumors that the family was considering selling a share of the team. The interest was great and England’s richest man Jim Ratcliffe said he was interested. Other stakeholders were the PE company Apollo Global Management and Elon Musk.