Manchester United released their financial figures for the 2023/24 season and the club’s wage bill has spiked 10 percent.
The Red Devils announced a net loss of £113.2m for 2023/24 ending on June 30th after losses of £28.7m in 2022/23 and £115.5m in 2021/22.
It marks the first full financial accounts at Manchester United since Sir Jim Rattcliffe‘s Ineos took sporting control at Old Trafford with a 25 percent takeover deal.
Data suggested that United were on track to announce turnover of £700m for the first time in the club’s history
However, the club’s accounts show that revenue only increased two percent up to £662m.
Manchester United’s latest wage bill
The fresh accounts also give us a glimpse into the Manchester United’s wage bill and figures show that it increased by 10 percent in 2023/24.
United paid out £364.7m in wages last season. The club added seven players to the first team in the summer of 2023, including Rasmus Hojlund and Mason Mount.
Speaking to football finance expert Adam Williams, he explains how United’s wage bill compares to their biggest Premier League rivals.
“We don’t have figures from the other Big Six clubs for 2023/24, as they aren’t PLCs and therefore aren’t obliged to release their accounts until early next year,” Williams said.
“However, benchmarking against their figures in 2022/23, United’s wage bill of £364.7m is lower than Man City, Chelsea and Liverpool’s totals.
“Ratcliffe is trying to get costs under control and has spoken about moving to more of an incentive-based contract model.
“Paying players relative to performance on the pitch would further protect United in the event that they have a fallow year.”
Despite the increase, United have managed to keep their wage bill below those of Manchester City, Chelsea and Liverpool. With Ratcliffe and Ineos investing cleverly over the summer, United are quickly getting a grip of their wage structure.
Finance expert says Man United wage bill will drop
Williams continued to explain that United’s wage bill will have dropped in 2024/25.
“In 2024-25, that figure will fall, partly as a result of getting some of the club’s biggest earners off the payroll and partly because of their failure to qualify for the Champions League.
“With plans to build a new stadium, cost control is going to be essential for United going forward.
“Especially in the era of PSR, they can’t afford to show the same financial inefficiency going forward.”
United are confident that they have not breached the Profit and Sustainability Rules despite the heavy losses, so the club should avoid any potential punishment.
READ MORE: Five clues that show how £2bn Sir Jim Ratcliffe project will transform Man United
As explained, Ineos did well to clear out the first-team squad over the summer with big earners such as Anthony Martial, Raphael Varane and Jadon Sancho all leaving the club.
Hopefully it stands United in good stead to continue their on-and-off pitch investment since Ineos’ takeover.
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