Manchester United report net loss of £113.2m for 2023-24: Details
Manchester United have disclosed a net loss of £113.2m for the fiscal year ending June 30, according to its most recent financial statements. This follows losses of £28.7m in 2022-23 and £115.5m in 2021-22, bringing the total losses over the past five years to over £370m. Despite these figures, the club is not anticipated to violate the Premier League's profit and sustainability rules due to certain spending exclusions and allowances known as 'add backs.' Here's more.
Club's commitment to financial regulations
Manchester United CEO Omar Berrada has assured that the club remains committed to, and in compliance with, both the Premier League's profit and sustainability rules and UEFA's financial fair play regulations. This statement comes despite the club's recent financial losses. The Premier League regulations stipulate that clubs cannot lose more than £105m over a three-year period, a rule breached by Everton and Nottingham Forest resulting in points deductions.
Manchester United's performance and ownership changes
The financial figures were released during a period when Manchester United finished eighth in the Premier League, ended last in their Champions League group, but secured victory in the FA Cup. The past season also witnessed British billionaire Sir Jim Ratcliffe acquiring a 27.7% stake in the club. Since Ineos's co-ownership was confirmed in December, club director Sir Dave Brailsford has been conducting an extensive review of club operations.
Cost-cutting measures and debt situation
In July, Manchester United announced plans to cut 250 jobs as part of a cost-cutting strategy. The club anticipates saving between £30m and £35m over two years from 2025 due to this 'club-wide cost review.' Alongside a long-standing debt of $650m (£496.52m), United also has 'total current borrowings' of £35.6m, with an outstanding balance of the revolving credit facility on June 30 standing at £30.0m.
Revenue projections and player acquisitions
Despite the financial challenges, Manchester United projects to generate between £650m and £670m in revenue next year after recording a record £661.8m this year. The club's wage bill has increased by 10% to £364.7m. In the current season, United will compete in the UEFA Europa League and have won one of their three Premier League games so far (L2). They have signed five players this summer: Manuel Ugarte, Joshua Zirkzee, Leny Yoro, Matthijs de Ligt and Noussair Mazraoui.
