Manchester United have indicated a net loss of £113.2 million in the year which ended on June 30, 2024, based on the latest financial records shared by the club.
This follows losses of £28.7 million between 2022/23 and £115.5 million in the 2021/22 financial year. Their latest financial results also shows a cumulative loss of over £370 million over the past five years.
Despite the figures reported in their latest results, Manchester United are not expected to have flouted the Premier League’s profit and sustainability rules.
This is because not all spending goes against their calculations, and clubs can claim allowances regarded as “add-backs”.
However, based on Premier League regulations, clubs cannot experience a deficit above £105 million over three years.
This was why Everton and Nottingham Forest received points deductions for breaching the rules last season.
Manchester United’s CEO Omar Berrada Confident Of Complying With Premier League Profit And Sustainability Rules
After the reports was shared, Manchester United’s chief executive, Omar Berrada insisted that the club is committed to complying with the Premier League’s PSR rules.
Berrada said: “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.”
How Have Manchester United Fared Within The Period The Financial Records Was Collated?
The recently reported financial figures of Manchester United cover a timeframe when they finished in 8th position on the Premier League table and had a torrid outing in the UEFA Champions League, finishing last in a group that housed Galatasaray, Copenhagen, and Bayern Munich.
However, they claimed the FA Cup title in their final game of the season, defeating Manchester City 2-1 at Wembley.
The 2023/24 season also saw the football operation of Manchester United changing hands from the Glazers to the INEOS group, as British billionaire Sir Jim Ratcliffe purchased a 27.7% stake in the club.
The Old Trafford side’s director of football, Sir Dave Brailsford, has led a holistic examination of club operations since Ineos’ co-ownership of the club was confirmed in December 2023.
In July 2024, it also became public that Manchester United would relieve over 200 employees of their jobs as part of measures to reduce costs.
The club believes that they would save between £30 million and £35 million over two years from 2025 due to the new measures put in place.
Manchester United
Meanwhile, Manchester United has a long-standing debt of £496.52 million, which hasn’t been cleared alongside “total current borrowings“ of £35.6 million.
The outstanding balance of the revolving credit facility on June 30, 2024, stood at £30.0 million.
The Red Devils are confident of generating between £650 million and £670 million in revenue in 2025, having recorded an impressive £661.8 million in 2024.
Despite the spike in revenue generated, Manchester United experienced a wage increase of 10%, with the figures pegged at £364.7 million.
Erik ten Hag’s side, who will be competing in the Europa League this campaign, have won just one of their three Premier League games thus far.
They will be aiming to defend their FA Cup crown, which they won last season, and possibly end the campaign in a higher position compared to their 8th-place finish last term.
Manchester United secured the services of five players this summer, namely Manuel Ugarte, Joshua Zirkzee, Leny Yoro, Matthijs de Ligt, and Noussair Mazraoui, and they would be banking on these players to deliver in the 2024/25 season.
