Manchester United has declared its commitment to a sustainable future while reporting net losses of £113.2m in its latest financial results.
In its fourth quarter and full-year fiscal 2024 results, Manchester United showed positive momentum toward reclaiming its former glory, with a record £661.8m in revenue. This increase is largely driven by higher broadcasting and matchday income from last season’s Champions League participation, a competition it will miss this season.
Despite finishing eighth last season, Manchester United continues to demonstrate its status as a major force in European football. The latest report highlights the club’s efforts to streamline operations by hiring experienced executives and implementing a redundancy program. This initiative resulted in a reduction of 250 positions across various departments by the end of August.
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.”
The report reveals that total operating expenses for the year were £768.5m, marking a rise of £87.4m, or 12.8%, from the previous year. Combined with other costs, this increase will likely be a major talking point in the football world, as Manchester United has not turned a profit since 2019.
Turning a profit in football, especially at the highest level, is almost unheard of, as clubs must continually invest to remain competitive. However, these investments must be balanced, or clubs risk violating the Profit and Sustainability Rules (PSR).
Currently, the rules allow clubs to post losses of up to £105m over a three-year period. Manchester United’s total pre-tax loss for the most recent three-year PSR cycle is £312.9m.
Clubs like Everton and Nottingham Forest are well-acquainted with these conditions, as both incurred points deductions last season after being found in breach of PSR. So then why are Manchester United confident that they remain in line with the guidelines?
Over the past three seasons, Manchester United has managed to reduce its losses by £208m or more. This is due to certain expenditures being eligible for deductions, which do not count towards PSR such as Covid-19 payments and stadium upgrades to name a few.
“Today, we announce new guidance for fiscal 2025 which reflects a partial year impact of the transformative cost-savings and organisational changes that we have been busy implementing over the summer,” Berrada added.
“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.”
