Manchester United had a pre-tax loss of almost £2.5m a week in the first quarter of 22/23, despite a 7% decrease in wages as pay cuts kicked in following non-qualifying for Champions League.
The board has scrapped the twice-weekly dividend payment.
From neutral Switzerland, the authoritative Swiss Ramble casts a judicious eye over the complaint about Everton’s spending made to the FA by Burnley and Leeds United. It is difficult to know how this will play out, though it does look like Everton have a case to answer.
Leeds United and Burnley have requested an independent investigation, which they want to be expedited, however, it is unclear whether the Premier League would make a quick conclusion. The Premier League Profitability and Sustainability (P&S) rules allow for a £5 million loss per year, which can be supplemented by a £30 million equity investment, for a total permissible loss of £35 million per year. This equates to £105 million throughout the three-year monitoring period. However, in order to assist mitigate the negative impact of COVID, the Premier League has altered the regulations, so the 2022 monitoring period will evaluate the seasons 2019/20 and 2020/21 as a single (average) period. This is significant since it indicates that Everton’s loss over the adjusted three-year period has been reduced.
The accounts for Charlton Athletic club holding company Clear Ocean Capital for 2020/21 have been published. Once interest depreciation and amortization are taken into account, the loss before taxation for the year was £6.8m on a turnover of £6.32m for a 10-month period. After taxation, it was £5.1m. Football finance guru Kieran Maguire has pointed out that the operating loss was £210,000 a week.
The Premier League and EFL central distributions provided 66% of the income (£4.2m). Commercial (£1.6m) accounted for 25% of the total. Streaming revenue increased significantly, however, this was offset by a drop in sponsorship and non-matchday activities. Other (including Valley Gold, which cost £163k) was £380k, while match day was £232k (Covid). Profit from transfer fees was £5.6 million, however, amortization reduced this to a net profit of £3 million in the accounts. Lookman, Grant, Dijksteel, and Pope all received selling-on fees. Transfer fees, termination payments, and other costs totaled £1.9 million.