SaqManchester United are confident they are complying with Premier League and UEFA financial rules despite posting a net loss of £113.2m in their latest accounts.
This is the fifth consecutive year that United have recorded an annual loss, with the club posting a deficit of £115.5m in 2021-22 and £42.1m in 2022-23. Profitability and sustainability rules (PSR) allow for a loss of £105m over a three-year period, but under the regulations, certain deductions are allowed in relation to investment in infrastructure, the academy and women’s teams, among other things, which United say means they will not fall under the spending regulations. Everton and Nottingham Forest were given points deductions last season after exceeding the permitted losses in relation to PSR.
United achieved a record turnover of £661.8m in the financial year to 30 June and have implemented a number of cost-cutting measures, which the club’s management believe will deliver savings of between £40m and £45m a year. United announced plans in July to make 250 staff redundant as part of a restructuring led by Sir Jim Ratcliffe, who bought a 25% stake in United in December and now heads football operations at Old Trafford. As part of the club’s new structure under Ratcliffe, Omar Berrada has moved from Manchester City to become the new chief executive. Part of Berrada’s mission is to put United on a more secure financial footing by operating them more efficiently, while maximising football and commercial success.
The £73.1m increase in losses compared to last year can partly be attributed to excessive spending in the transfer market. Eight-figure sums were paid to sign Mason Mount, Andre Onana and Rasmus Hojlund but that investment, which also contributed to a 10% increase in the wage bill to £364.7m, failed to secure Champions League participation last season as United finished eighth. This will have a further knock-on effect on next year’s accounts, with United’s broadcast revenue set to fall by £30m due to their participation in the Europa League rather than the Champions League.
The club had to pay £47.8 million to conduct a strategic review, which ultimately led to Ratcliffe investing in the club and overseeing management changes, including the appointment of Dan Ashworth and Jason Wilcox to senior roles. Ratcliffe has committed to injecting $300 million (£229 million) into United by the end of the calendar year, having already paid two-thirds of that amount. Work has begun on a £50 million redevelopment at the club’s Carrington training ground.
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“The club remains committed to the Premier League’s profitability and sustainability rules and UEFA’s Financial Fair Play rules,” Berrada said. “We are working towards greater financial sustainability and making changes to our operations to make them more efficient, to ensure we are devoting our resources to improving performance on the pitch.
“Ultimately, Manchester United’s strength lies in the passion and loyalty of our supporters. Our aim is to return the club to the top of European football. Everyone at the club is aligned behind a clear strategy to deliver sustainable success on and off the pitch, for the ultimate benefit of our supporters, shareholders and a wide range of stakeholders.”
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