Man United posts $144 million losses in latest financial report
Manchester United has revealed losses of around $144 million for the most recent financial year. The Red Devils also announced revenues reaching $863 million for the year ending on June 30th. Nevertheless, net losses are rising at the club due to continued investments in the roster. The latest tally takes overall losses at United to about $481 million over the last five years.
The most recent financial year runs from July 1, 2023, to June 30 of this year. Because all of United’s transfer business last summer occurred after July 1, every deal from 2023/24 is included in these results. Club brass recorded a net spend of about $158 million during this timeframe after buying several stars. This includes moves for Mason Mount, Andre Onana, and Rasmus Hojlund.
The club continued its massive spending spree this summer, but the moves were all finalized after the financial deadline. As a result, deals for Joshua Zirkzee, Leny Yoro, Matthijs de Ligt, Noussair Mazraoui, and Manuel Ugarte will impact the next financial year.
New minority owner cuts costs at club as losses rise
Along with major transfer business, Sir Jim Ratcliffe’s arrival at United directly affected the recent financial posting. The British billionaire acquired a minority stake in the club back in February for around $1.6 billion. A recent report claimed that the deal essentially cost the English team more than $50 million. Legal and consultancy fees were the main reasons for the financial setback.
Since Ratcliffe’s arrival, the billionaire has made several cuts behind the scenes. For instance, 250 United employees were fired. That move saved the club around $12 million. Multiple highly rated academy coaches were among those departing. Along with the firings, Ratcliffe also made several money-saving moves regarding United’s women’s team.
Cost-cutting measures were necessary at the club because of their recent financial results. In fact, United has recorded losses of at least $115 million in three of the last four financial years. The last year in which the club was profitable was 2019.
United official says team is working towards sustainability
Current Premier League profit and sustainability rules (PSR) state that teams cannot exceed losses of $136 million over three years. Despite seemingly having issues with the law, United claims to be compliant with PSR and UEFA’s financial fair play rule. This ultimately comes down to the club’s ongoing investment in infrastructure and youth development.
Omar Berrada, United’s new chief executive officer, released a statement on the club’s seemingly shaky financial postings. The exec claimed that the team is working towards being more sustainable. “We are all extremely focused on working collectively to create a bright future, with football success at the heart of it,” proclaimed Berrada.
“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 enhance on-pitch performance.”
“Ultimately, the strength of Manchester United is driven by the passion and loyalty of our supporters. Our clear objective is to return the club to the top of European football. Everyone at the club is aligned on a clear strategy to deliver sustained success, both on and off the pitch, for the ultimate benefit of our fans, shareholders and hugely diverse range of stakeholders.”
PHOTOS: IMAGO.