Finance guru: Man United at mercy of the market as £115m blow confirmed
The Man United business model means they are at the mercy of economic markets.
That is the view of finance expert Doctor Dan Plumley, speaking exclusively to Football Insider about the Red Devils’ latest annual accounts.
The 177-page document, which was published last Friday (23 September), covers the financial year ending June 2022.
Detailed therein is a £115.5million loss despite turnover rising by 18 per cent to £583.2m.
The club has traded publicly on the New York Stock Exchange for over a decade and its net debt totals almost £515m.
This financial setup means that they can be buffeted by fluctuations in interest and exchange rates, explains Plumley
“There is a lot going on here, as there always is with United,” the Sheffield Hallam University expert told Football Insider’s Adam Williams.
“For context, the value of the pound has fallen against the dollar, which has caused debt to rise. Interest rates rising has caused some problems with repayments.
“We also have to note the dividend to the Glazers. Their wages are also up, so they have still been investing in players. There are a couple of managerial compensation fees there as well.
“When you add all that together, that contributes to the net loss. It’s not a great picture when you look at it like that.
“But because of their business model, there are some risks with interest payments and how the debt is structured.
“People are going to focus on the dividends, which totalled £33m and ask why the Glazers are doing that when the net loss was £115m. But on the flip side, they have spent big in the transfer market this summer as well.
“They are having a go at trying to restructure things. I get the sense that they might tighten the purse strings for Ten Hag a little bit linked to those finances.
“It’s not a great picture in terms of net losses. United can cope with that and their revenue is strong, but you are always going to have that dividend issue in the background.”
In other news, pundit suggests Man United could show David de Gea exit door after journalist’s £61m update.