With the signings of Cristiano Ronaldo, Raphael Varane, and Jadon Sancho over the summer, Manchester United‘s payroll expenses jumped by as much as 23% in the latest quarter, reaching 105 million euros.
In the first quarter of the 2021/22 fiscal year, “employee benefit expenses” increased by £16.6 million ($22 million) when compared to the same period the previous year. The club spent £88.5 million on pay during the quarter ending September 30, when Ronaldo was re-signed as well as Raphael Varane and Javier Sancho.
This increase was partially offset by £17.4 million in player sales, mostly Dan James’ departure to Leeds, however, the club did receive a sell-on fee following Romelu Lukaku’s transfer from Inter Milan to Chelsea.
Revenues from commercial activities increased by 7.9% to £64.4 million. The arrival of Cristiano Ronaldo, who was only back at the club for the final month of the quarter, will have played a part in this. After recent defeats to rivals Liverpool and Manchester City, the club has slid to sixth place in the Premier League.
Despite these additions, United’s revenue climbed by 16.1% to 150 million euros, which can be attributed in part to supporters returning to Old Trafford and other stadiums around England and Europe.
Club under Pressure
Matchday revenue has increased considerably from two million euros the previous season when games were played behind closed doors to 24.4 million euros this season. The club’s debt has stayed relatively constant at 523 million euros, compared to a previous total of 524.78 million in the same period last year.
Despite their high-profile signings, manager Ole Gunnar Solskjaer is under mounting pressure, with the club being nine points behind leaders Chelsea.
United’s executive vice-chairman Ed Woodward said: “While these financial results today demonstrate our resilience through the pandemic, our top priority is success on the pitch.”
“The manager, players, and everyone at the club are determined to achieve that objective.”