Manchester United’s latest financial report has revealed a staggering net loss of £113.2 million for the year ending 30th June. This follows losses of £28.7 million in 2022-23 and £115.5 million in 2021-22, bringing their total losses over the past five years to an eye-watering £370 million. Despite these concerning figures, the club remains confident it will not breach the Premier League’s profit and sustainability rules, thanks to the allowances known as ‘add backs’, which reduce the financial impact of certain expenditures.
Under Premier League regulations, clubs cannot lose more than £105 million over a three-year period. Manchester United’s financial maneuvers, however, appear to keep them on the right side of the rules, as the club’s chief executive, Omar Berrada, reassured fans and stakeholders, stating, “The club remains committed to, and in compliance with, both the Premier League’s profit and sustainability rules and UEFA’s financial fair play regulations.” This contrasts sharply with the fate of clubs like Everton and Nottingham Forest, which faced points deductions for financial breaches.
United’s financial woes come on the back of a disappointing season where they finished eighth in the Premier League, crashed out at the bottom of their Champions League group, but managed to lift the FA Cup. The club’s performance on the pitch mirrored the turbulence off it, with Sir Jim Ratcliffe’s acquisition of a 27.7% stake in the club marking a significant shift in ownership dynamics. Since Ineos’ co-ownership was confirmed in December, United director Sir Dave Brailsford has spearheaded a sweeping review of club operations, resulting in plans to slash 250 jobs, aiming to save between £30 million and £35 million over the next two years starting in 2025.
Adding to the financial strain, Manchester United’s long-standing debt stands at $650 million (£496.52 million), with additional borrowings of £35.6 million and a revolving credit facility balance of £30 million. Despite the heavy financial burden, United projects revenue between £650 million and £670 million next year, up from a record £661.8 million this year. However, this has come at a cost, with wages rising 10% to £364.7 million.
On the field, United has had a mixed start to the new season, with just one win from their first three Premier League games and a Europa League campaign on the horizon. Their summer signings, including Manuel Ugarte, Joshua Zirkzee, Leny Yoro, Matthijs de Ligt, and Noussair Mazraoui, are expected to bolster the squad, but whether they can provide a financial or performance turnaround remains to be seen.
