Ghana's No. 1

Man Utd will not pay dividend in 2023

Published on: 09 December 2022

Executive co-chairmen and directors Avram Glazer (left) and Joel Glazer (right) are considering selling Manchester United

Manchester United have opted not to pay a semi-annual dividend to shareholders in the 2023 financial year, in response to the increased investment in Erik ten Hag's playing squad.

The controversial dividends have been paid since 2015.

In the last financial year, £33.6m was paid in dividends - mainly to the Glazer family.

United are the only Premier League club to pay a dividend, which has been one source of anger among the club's fans.

The news was contained in United's first quarter financial results and comes just over a fortnight after the American family confirmed they were considering selling the club they have owned since 2005.

In addition, the Old Trafford club confirmed it was amending its annual EBITDA (earnings before interest, taxes, depreciation and amortisation) forecast from £100m-£110m to £125m-£140m "as a result of reduced player wage costs".

Evidently, a significant proportion of the £25m difference relates to Portugal forward Cristiano Ronaldo's contract, which was cancelled last month.

Overall revenue for the period was £143.7m, an increase of 13.6% on the same quarter last year, with wages reducing by £6.2m despite a number of new signings in the summer, due to the 25% reduction on salaries triggered by the failure to qualify for this season's Champions League.

Whilst the club's US debt remains unchanged at $650m, the fluctuation in currency exchange rates means that was £577.4m on 30 September 2022, compared to £476.2m 12 months earlier.

The news that dividends would not be paid has been welcomed by the Manchester United Supporters Trust, which added: "Dividends should not be paid when the club is not achieving success on the pitch, challenging for top honours.

"That is rewarding failure and removes the incentive for the owners to ensure sufficient reinvestment of profits back into the club.

"Our view is that no further dividends should be paid while new investment and ownership remain unresolved. "

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Source: bbc.com

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