Manchester United has announced a net loss of £113.2 million for the year ending June 30, marking a continuation of financial difficulties following previous losses of £28.7 million in 2022-23 and £115.5 million in 2021-22. Over the past five years, the club’s total losses have now exceeded £370 million.
Despite these figures, Manchester United is expected to remain compliant with Premier League profit and sustainability regulations. Clubs are allowed to claim certain allowances, known as ‘add backs,’ which do not count against the financial calculations for compliance. The Premier League mandates that clubs cannot exceed £105 million in losses over a three-year period, with Everton and Nottingham Forest having faced points deductions for breaches.
United’s CEO, Omar Berrada, reassured that the club adheres to both Premier League profit and sustainability rules and UEFA’s financial fair play regulations. The financial results coincide with a challenging season where the club finished eighth in the Premier League, placed last in their Champions League group, but won the FA Cup.
Additionally, Sir Jim Ratcliffe, a British billionaire, acquired a 27.7% stake in the club last season. Following this, United director Sir Dave Brailsford has spearheaded an extensive review of operations. As part of cost-cutting measures, the club announced plans to eliminate 250 jobs, aiming to save between £30 million and £35 million over the next two years.
Manchester United continues to carry a significant debt load of $650 million (£496.5 million) along with current borrowings of £35.6 million and a revolving credit facility balance of £30 million as of June 30. The club anticipates generating between £650 million and £670 million in revenue next year, following a record £661.8 million this year. Wages have risen by 10% to £364.7 million.
United, who are competing in the Europa League this season, have had a mixed start in the Premier League with one win from three games. The club has bolstered its squad with summer signings including Manuel Ugarte, Joshua Zirkzee, Leny Yoro, Matthijs de Ligt, and Noussair Mazraoui.
I’m a finance writer with three years of experience in investment analysis. At Investorwelcome , I translate complex financial concepts into clear, actionable insights to help investors navigate the market with confidence. Combining my solid academic background with practical industry knowledge, I’m dedicated to providing readers with accurate and timely information. My goal is to empower both new and seasoned investors by simplifying intricate data and offering strategic advice. When I’m not writing, I stay engaged with market trends and investment innovations to ensure my content remains relevant and valuable.
