Manchester United's new wage bill could ECLIPSE the British record of £387MILLION after summer arrivals of Cristiano Ronaldo, Raphael Varane and Jadon Sancho as club chief says total salaries have increased 'by around 20 per cent'
* Manchester United's wage bill could eclipse the British record, it is understood
* Cristiano Ronaldo, Jadon Sancho and Raphael Varane all arrived in £135m spend
* United's latest financial figures show an approximate 20 per cent rise in wages
* The club's debt fell from £474m to £419m with the wage bill increasing
Manchester United’s wage bill is expected to leap by a fifth this season and could eclipse the British record at around £387million.
Cross-town rivals Manchester City reported record salaries of £351m in their latest set of figures, accounting for the 2019-20 season and published earlier this year.
United’s chief financial officer Cliff Baty forecast on Friday that the club’s wages for last season, which were below City and increased to £322m by virtue of Champions League qualification, will go up by ‘around 20 per cent’ this time around.
That is owing to the major summer recruitment drive that saw Cristiano Ronaldo return to Old Trafford alongside the signings of Raphael Varane and Jadon Sancho.
Manchester United could eclipse the British record for wages. Cristiano Ronaldo's sensational return to Old Trafford has inspired belief they will win trophies. Old Trafford is full again this season after Covid-19 restrictions kept supporters away
Ronaldo is believed to have become the highest-paid player in Premier League history when arriving from Juventus for almost £20m. The new faces will contribute to wages soaring by around £64m this term.
‘In terms of costs, we’d expect wages to increase by around 20 per cent which reflects the increased investment in the squad following the summer transfer window,’ Baty said as United released their annual accounts.
City, United and Liverpool make up the top three spenders on salaries in England. Whether United break the record set by City will become clear next year when the 2020-21 accounts of the Premier League champions are revealed.
United recorded an operating loss of £36.9m last season, put down to the financial impact of the coronavirus pandemic.
But Ole Gunnar Solskjaer was still backed in the transfer market as they attempt to fight for silverware. Ed Woodward said they are primed to take the next step when announcing the club’s latest financial figures.
Woodward said: ‘We have been clear in our strategy to build a squad with a blend of top-class recruits and homegrown talent, comprising a balance of youth and experience, with the aim of winning trophies and playing attacking football the Manchester United way.
‘As part of this, we have continued to strengthen our recruitment and scouting processes, and we have also increased our investment in the academy, to ensure that this success is sustainable.
‘While squad-building is a constant process, we are more confident than ever that we are on the right track.’
Despite the losses, Woodward believes United’s strong commercial arm has allowed them to move forward in the transfer market.
‘It is not an accident that we have been able to invest this summer at a time when many clubs have been retrenching,’ Woodward added. ‘This reflects the strong commercial model we have built over many years, ensuring that our spending is always underpinned by revenues that we generate ourselves.
‘However, while we are confident in our relative strength, it remains clear that football as a whole faces major financial challenges caused by years of material inflation in wages and transfer fees, exacerbated by the impact of the pandemic.’
Meanwhile, Mino Raiola suggested Paul Pogba could be tempted to swap United for Juventus next summer.
United are hopeful of agreeing a new contract with the 28-year-old, who is yet to decide his future. Raiola raised the prospect of a return to Turin on a free transfer.
‘Paul Pogba is out of contract in June, so we’ll talk with Man Utd and we’ll see what happens,’ the agent told Corriere dello Sport.
‘Juventus? Paul still loves Turin. There’s a chance that Pogba will return to Juventus, yes - but it also depends on Juventus plans.’
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