Manchester United has reported a net loss of £113.2 million for the year ending June 30, despite claiming adherence to Premier League financial regulations.
The club’s latest losses follow consecutive deficits of £115.5 million and £42.1 million. While the Premier League’s Profitability and Sustainability Rules (PSR) allow for a maximum loss of £105 million over three seasons, certain expenditures, such as infrastructure, youth development, and women’s team investments, are considered permissible.
United sources acknowledge that transfer and wage spending have contributed to the losses, but the club insists it remains compliant with both the Premier League’s PSR and UEFA’s Financial Fair Play Regulations.
Included in United’s losses were costs associated with the strategic review initiated by the Glazer family, which ultimately led to Sir Jim Ratcliffe acquiring a 27.7% stake in the club. Despite the loss, United’s revenue reached a record £661.8 million.
To improve financial sustainability, the club has implemented cost-cutting measures, including a redundancy program that resulted in 250 job cuts. These measures are expected to save £40-45 million and positively impact future financial results.
The club views the strategic review costs as a necessary investment for structural change and attracting investment. Ratcliffe is committed to investing 300m US dollars (£229m) in club infrastructure by the end of the year, with 200m USD of that already paid.
Chief executive Omar Berrada said: “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 organisational changes that we have been busy implementing over the summer.
“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.”