Manchester United has continued to cut costs in its latest financial report covering the first quarter of the 2025 fiscal year.
The report outlined that commercial revenue for the quarter was £85.3m, a decrease of £5.1m compared to the same period last year. This has been attributed to the men’s first team playing three fewer games on its pre-season tour in the US – further solidifying the growing importance of these tours for clubs’ commercial activity.
Additionally, retail, merchandising, apparel and product licensing revenue decreased by £700,000 to £33.5m and matchday revenue saw a reduction from £27.4m to £26.5m.
Broadcasting revenue also suffered, standing at £31.3m compared to £39.3m over the prior year quarter. Manchester United has stated that this is due to the club’s participation in the UEFA Europa League compared to the Champions League which it participated in during the 2023/24 season.
Despite the revenue declines the club’s net profit rose, converting from a loss of £25.8m in in Q1 last year to a gain of £1.4m. The extensive cost cutting efforts the club has been pursuing lately may have contributed to this.
Omar Berrada, CEO of Manchester United, commented: “The season is now well underway for both our men’s and women’s teams, and we are keen to ensure both are as competitive as possible.
“We are delighted to have appointed Ruben Amorim as head coach of our men’s team and remain committed to returning Manchester United to the top of domestic and European football.”
The red side of Manchester has been focused on reducing operating costs since its minority takeover by Sir Jim Ratcliffe’s INEOS. This work continues to progress according to the latest report.
Employee benefit expenses for the quarter were £80.2m, a decrease of £10.1m compared to Q1 2024, which is primarily due to changes in the first team playing squad. Other operating costs also decreased by £4.3m to £39.2m – one benefit of playing fewer games in its pre-season tour.
Despite the improved cost efficiency in these areas, total operating expenses for the quarter were £185.6m, an increase of £900,000.
The club also looked to generate revenue at the start of this season by partnering with several brands such as Heineken through its Tiger brand, which also looks to engage with United’s Asian fanbase.
Berrada said: “Our cost and headcount reductions remain on track, and we are pleased to have seen further commercial traction, and welcome new partner Heineken, through their Tiger brand.”
Looking ahead, the club has reiterated its full-year revenue guidance of £650m to £670 and adjusted its EBITDA guidance of £145m to £160m. It has also noted that it is committed to the Premier League’s Profit and Sustainability (PSR) and UEFA’s Financial Fair Play (FFP) regulations.
The club also pointed to the progress that has been made by the Old Trafford Regeneration Task Force, composed of various community and government leaders who are collaborating to help the local area benefit from enhancements made to the stadium and surrounding areas.
“Our renovation of the Carrington Training Centre is progressing well, while the Old Trafford Regeneration Task Force continues its work. Once it has delivered its recommendations, we will then take some time to digest them and evaluate all our options in the upcoming year,” Berrada concluded.
