£10 million Solskjaer payoff pushes Man Utd debt close to £500m
In quarterly financial figures released on Tuesday, United revealed that their total debt, as of December 31, 2021, had increased to £494.8 million — up from £455.5 million 12 months earlier.
The dismissal of Ole Gunnar Solskjaer and his staff cost Manchester United £10 million and contributed to the club’s debt rising to almost £500 million.
In quarterly financial figures released on Tuesday, United revealed that their total debt, as of December 31, 2021, had increased to £494.8 million — up from £455.5 million 12 months earlier.
United blame that rise on the effects of the Covid-19 pandemic impacting revenue and the fact that the team were unable to undertake a lucrative overseas pre-season tour last summer.
But the figure was inflated by compensation for Solskjaer, 49, who was paid £7 million when he was sacked as manager in November, and an increase in wages.
United’s wage bill has increased by £16 million, on the comparable period a year earlier, to a total of £97.7 million for the quarter that ended in December.
That reflects the summer signing of Cristiano Ronaldo, who is believed to be the best-paid player in the Premier League.
The club’s new chief executive, Richard Arnold, was able to announce an operating profit of £5.4 million for the quarter. But that figure dropped from £48.5 million in the comparable period in 2020; a fact United have blamed on not only Solskjaer’s payoff but also the overall increase in wages.
Arnold, making his first public statement since taking over on February 1, with Ed Woodward having resigned at the end of last year, said that United are focused on “implementing a strategy to win” after failing to win a trophy since 2017.
“Everyone associated with Manchester United should have belief in the opportunities that lie ahead of us, both on the pitch and in the way we engage and serve our fans,” Arnold said.
“We have a clear vision and we are implementing a strategy to win with an empowered leadership team to drive that forward.
“We will foster a culture of excellence through a world-class football environment, while strengthening the role of fans at the heart of the club and harnessing the power of Manchester United to make a positive impact on people, the environment and society.
“All of this will be supported by a sustainable operating model that ensures the club is strong for the present and secure for the future.”
United’s CEO of media, Phil Lynch, said that the club had generated more than one billion digital interactions and claimed that United are now the world’s No 1 sports club on social media worldwide.
Meanwhile, United’s football director, John Murtough, confirmed to investors that the search for Solskjaer’s permanent replacement is under way — with the new manager instantly expected to deliver trophies.
