Shares of Manchester United (NYSE: MANU) are trading modestly lower today after the soccer giant reported a soaring wage bill. On a more positive note, revenues are recovering after the Covid-induced environment created havoc.

MANU reported a loss of $21.4 million in its fiscal first quarter, which equates to EPS ($0.11). Revenue for the quarter came in at $174.3 million.

Ed Woodward, Executive Vice Chairman, commented, “While these financial results today demonstrate our resilience through the pandemic, our top priority is success on the pitch. The manager, players and everyone at the club are determined to achieve that objective.”

Revenues recovered as the UK allowed fans to return to stadiums earlier this year. As a result, the matchday revenue soared to £18.8 million from £1.7 million for the prior quarter.

Commercial revenues were up 7.9% while broadcasting revenue fell 9% “primarily due to playing four fewer home and away games across domestic competitions.”

Net Debt as of 30 September 2021 was £439.7 million, compared to £440.6 million as of 30 September 2020.

The wage bill skyrocketed to £354 million per year after the club spent heavily in the summer to reinforce its squad. The arrival of the soccer superstar Cristiano Ronaldo, as well as the signings of Raphael Varane and Jadon Sancho, pushed the wage bill 23.1% higher compared to a year-ago period.

Manchester United shares are down over 4% YTD.