Manchester United Projects High Revenue Despite £113.2m Loss

Manchester United reported a net loss of £113.2 million for the year ending 30 June, according to their latest accounts. This follows previous 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 over £370 million.

Despite these losses, United are unlikely to breach the Premier League’s profit and sustainability rules, thanks to allowances known as ‘add backs’ that clubs can claim. The Premier League limits clubs to losses of no more than £105 million over a three-year period.

Everton and Nottingham Forest faced points deductions for breaching this rule. United’s CEO, Omar Berrada assured that the club remains in compliance with both the Premier League’s and UEFA’s financial regulations. The latest financial figures cover a period when United finished eighth in the Premier League and placed last in their Champions League group.

Despite these setbacks, they won the FA Cup. The season also saw British billionaire Sir Jim Ratcliffe acquire a 27.7% stake in the club. After Ineos confirmed co-ownership in December, United’s director Sir Dave Brailsford undertook a thorough review of club operations.

This review aimed to address various aspects of the club’s management and financial strategy. In July, the club announced plans to cut 250 jobs to lower costs. They aim to save between £30 million and £35 million over two years, beginning in 2025.

In addition to longstanding debt of $650 million (£496.52 million), United reported ‘total current borrowings’ of £35.6 million and a £30 million outstanding balance on their revolving credit facility as of 30 June. Despite financial strains, Manchester United expect to generate between £650 million and £670 million in revenue for the coming year.

They recorded £661.8 million this year while wages increased by 10% to £364.7 million. United, currently competing in the Europa League have won one of their first three Premier League matches. They made several new signings this summer including Manuel Ugarte, Joshua Zirkzee, Leny Yoro, Matthijs de Ligt and Noussair Mazraoui.