Manchester United posted a net loss of £113.2 million during the 2023/24 season despite earning record revenues.
Despite fears of breaching Financial Fair Play rules, United are confident they have worked within the guidelines, at a time part-owner Sir Jim Ratcliffe has been tasked with balancing the club’s books.
United have not been profitable as a football club since 2019 and we’ve a lot of work to do to get back to that.
The figures have been broken down courtesy of The Athletic:
- United incurred a total of £47.8m in exceptional costs related to the strategic review process which led to Ratcliffe’s minority stake
- United have made 250 employees redundant
- United’s pre-tax loss stood at £130.7m
Interestingly, the pre-tax profit is the starting point for the Premier League’s profitability and sustainability rules. Clubs can incur a loss of no more than £105m over three years, while United loss over that PSR cycle stands at £312.9m.
United can work a way around this because PSR allows for clubs to add back spending on youth development, women’s football and community work.
That is why United believe they are complaints with the Premier League and UEFA’s spending rules.
Omar Berrada, United’s chief executive, said: “As I embark on my new role as chief executive officer of this historic club, we are all extremely focused on working collectively to create a bright future with football success at the heart of it.
“We are working towards greater financial sustainability and making changes to our operations to make them more efficient, to ensure we are directing our resources to enhancing on-pitch performance.
“Today, we announce new guidance for fiscal 2025 which reflects a partial year impact of the transformative cost-savings and organizational changes that we have been busy implementing over the summer.”
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