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Costs rising faster than income at United

As Deloitte’s annual rich list suggests, Manchester United are still one of the game’s aristocrats. Their turnover for the 2021-22 season was up almost a quarter on the pandemic-hit season before, with matchday income rebounding from £7million to £111million.

Total revenue — broadcast, commercial and matchday — was £583million, up from £494million in 2020-21, which saw United climb from fifth to fourth in the Money League,

“A couple of things stand out in relation to Manchester United,” explains football finance guru Kieran Maguire.

“The first is that their costs are rising faster than their income. Since Sir Alex Ferguson retired as their manager in 2013, the wage-to-turnover ratio has increased from 50 per cent to 66 per cent. Thanks to Cristiano Ronaldo and other signings, last season’s wage bill went up by more than £60million to £384million — a Premier League record.

“The second is that in respect of income generation, the Old Trafford commercial machine has stalled. Empty trophy cabinets don’t sell deals, and after seeing both Chevrolet and TeamViewer get their fingers burned with front-of-shirt deals it will be harder for the commercial boffins to extract additional monies from sponsors.”

“Manchester United have seen no growth in commercial and matchday income since 2016 but in that period wages have increased from £232million to £384million, putting all the pressure on broadcast income to cover the extra costs — and broadcast income is determined by results on the pitch, rather than the club itself,” says Maguire 

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