Manchester United have announced a net loss of £113.2 million in the year ending June 30th, according to the club’s latest financial report.
This follows losses of £28.7 million in 2022-23 and £115.5 million in 2021-22, bringing the club’s total losses over the past five years to more than £370 million.
Despite these substantial losses, United is not expected to breach the Premier League’s profit and sustainability rules. The club benefits from allowances known as ‘addbacks,’ which means not all spending is counted in their financial calculations.
According to Premier League rules, clubs cannot lose more than £105 million over a three-year period, with Everton and Nottingham Forest recently receiving points deductions for breaches. However, Manchester United remain compliant with both the Premier League’s regulations and UEFA’s financial fair play guidelines.
“The club remain committed to, and in compliance with, both the Premier League’s profit and sustainability rules and UEFA’s financial fair play regulations,” said United’s chief executive Omar Berrada.
The reported financial results cover a period during which United finished eighth in the Premier League, were eliminated in the group stage of the Champions League, and won the FA Cup. During the same period, British billionaire Sir Jim Ratcliffe acquired a 27.7% stake in the club. Since Ineos’ co-ownership of the club was confirmed in December, United director Sir Dave Brailsford has led a comprehensive review of club operations.
In an effort to reduce costs, Man United announced in July that they would cut 250 jobs. The club expects to save between £30 million and £35 million over the next two years, starting in 2025, as part of a ‘club-wide cost review.’
In addition to its longstanding debt of £496.52 million), United also reported ‘total current borrowings’ of £35.6 million, with an outstanding balance of £30 million on their revolving credit facility as of 30 June.
Looking ahead, United projects revenue of between £650 million and £670 million for the next year, after recording a record revenue of £661.8 million this year. However, the club’s wage bill rose by 10% to £364.7 million.
Currently competing in the Europa League, United has won one of their three Premier League games so far this season. The club also bolstered its squad with five new signings this summer: Manuel Ugarte, Joshua Zirkzee, Leny Yoro, Matthijs de Ligt, and Noussair Mazraoui.
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