Manchester United made a loss of £113.2m last season despite posting the biggest income in their history.
It means they have lost £372m in the last five years, including more than £250m in the last three, though they claim they remain committed to and compliant with the Premier League’s Profitability and Sustainability Rules and Uefa’s Financial Fair Play regulations.
United had a revenue of £661.8m but believe hefty losses justify the cost-cutting process brought in by new co-owner Sir Jim Ratcliffe, in which 250 staff will lose their jobs. Ratcliffe has overseen a new structure to the football side of the club. And the club aim to save £40m-45m a year through what they call a “significant cost rationalization program”.
However, United’s wage bill went up £33.3m to £364.7m for a season in which they only finished eighth in the Premier League.
United attribute their losses in part to investment in the squad. The 2023-24 financial year included the arrivals of Rasmus Hojlund, for a fee rising to £72m, Mason Mount, for an initial £55m, and Andre Onana, for an initial £43m.
However, this summer’s five signings – Joshua Zirkzee, Leny Yoro, Matthijs de Ligt, Noussair Mazraoui and Manuel Ugarte – will feature in next year’s accounts.
During the year, Ratcliffe provided an injection of $200m (£153m), as was guaranteed as part of his investment in the club, for infrastructure, including a £50m revamp of the club’s Carrington training complex. The billionaire will put in a further $100m (£76.5m) by the end of 2024.
New CEO Omar Berrada said: “It has been a busy off-season for the club with successful training camps for both our men’s and women’s teams. We have strengthened our men’s first team with five exciting players and put a new football leadership structure in place to provide greater support to our manager, Erik ten Hag.
“Dan Ashworth was appointed sporting director and Jason Wilcox joined us as technical director, two extremely experienced and highly respected professionals who will add great depth to our team.”
United’s net debt remains at $650m (£498m) while they also owe £35m on a revolving credit facility, down from £100m a year earlier. United spent £61.4m over the year servicing interest on debt.
The club’s commercial income flatlined, being stuck at £302.9m for a second successive season and the club plan to appoint a chief business officer, charged with driving revenues up. Marc Armstrong, currently Paris Saint-Germain’s chief revenue officer, is a candidate for the role.United’s accounts also featured £47.8m of what they called “one-off exceptional costs” relating to the strategic review and restructuring of the club, mainly in legal and financial costs.
Former chief executive Richard Arnold received a £5.5m golden goodbye when he left. Former football director John Murtough has also left the club.
United anticipate their revenue for 2024-25 will be between £650m and £670m. They will not have Champions League revenues this season.
