Manchester United announced losses amounting to £113.2 million ($148 million) for the fiscal year ending June 30, despite generating record revenues of £661.8 million ($866 million). This financial result, released on Wednesday, comes in the wake of increased player spending and structural changes following British billionaire Jim Ratcliffe’s partial buyout, which saw him acquire a 27.7% stake for $1.3 billion.
The Premier League club cited rising costs in player acquisitions as a key factor for the losses. However, they remain within the league’s Profit and Sustainability Rules (PSR), which permit clubs to lose a maximum of £105 million ($137 million) over a three-year period. Clubs exceeding this limit, such as Everton and Nottingham Forest last season, face penalties, including points deductions.
Despite the financial shortfall, United assured compliance with both Premier League and UEFA regulations. The club is undergoing a significant restructuring, initiated after Ratcliffe’s investment, aimed at improving financial sustainability and operational efficiency. The restructuring led to 250 staff redundancies as part of cost-saving measures.
Omar Berrada, the new CEO recruited from Manchester City, emphasized the club’s focus on financial sustainability while allocating resources towards improving on-field performance.
United’s losses over the past three years include £28.7 million ($37.5 million) in 2022-23, £115.5 million ($151 million) in 2021-22, and £92.2 million ($120.5 million) in 2020-21. The latest report also factors in £47.8 million ($62.4 million) in costs, largely linked to Ratcliffe’s investment.
Solid FM | May 7, 2024
