According to the most recent financial statements, Manchester United recorded a net loss of £113.2 million for the year that ended June 30.
United has “total current borrowings” of £35.6 million in addition to the long-term debt of $650 million (£496.52 million). As of June 30, the remaining balance of the revolving credit facility was £30.0 million.
Despite the outcome, United is not expected to violate the Premier League’s profit and sustainability rules (PSR) because clubs are permitted to claim “add-backs,” or allowances, for spending that does not conflict with their calculations.
Premier League regulations prohibit clubs from losing more than £105 million in a three-year span, and Everton and Nottingham Forest were deducted points for violating this rule. PSR permits clubs to reduce their expenditures in a number of areas, such as community service, women’s football, and youth development, in order to help them stay below the £105 million cap.
Omar Berrada, United’s chief executive, said: “As I embark on my new role as chief executive officer of this historic club, we are all extremely focused on working collectively to create a bright future with football success at the heart of it.
“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 enhancing on-pitch performance.“
“Today, we announce new guidance for fiscal 2025, which reflects a partial year impact of the transformative cost-savings and organizational changes that we have been busy implementing over the summer.”
As part of its efforts to reduce expenses, United announced in July that 250 jobs would be cut. The club reports that the ‘club-wide cost review’ will save them between £30 and £35 million over the course of two years starting in 2025. After bringing in a record £661.8 million this year, United says they expect to bring in between £650 million and £670 million next year. Wages at the club increased by 10% to £364.7 million.
Manchester United has won one of its first three Premier League games and will compete in the Europa League this season. On Saturday, United will play Southampton, who were just promoted, in the Premier League.
Image Credit: REUTERS/Peter Powell
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