Manchester United has reported a net loss of £113.2m for the financial year ending 30 June 2024, according to the club’s latest accounts. This loss follows a deficit of £28.7m in 2022-23 and £115.5m in 2021-22, bringing their total losses over the past five years to more than £370m.
Despite these financial results, the club is not expected to violate the Premier League’s profit and sustainability regulations. This is due to allowances known as ‘add backs’ that clubs can use, which prevent all spending from being included in the profit and sustainability calculations.
Premier League rules restrict clubs from losing more than £105m over a three-year period. However, clubs like Everton and Nottingham Forest have recently been penalized with points deductions for breaching these limits. Manchester United’s chief executive Omar Berrada confirmed, “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.”
The financial figures reflect a challenging period for United, during which they finished eighth in the Premier League, failed to advance from their Champions League group, but secured victory in the FA Cup.
In December, British billionaire Sir Jim Ratcliffe acquired a 27.7% stake in the club, with United director Sir Dave Brailsford spearheading a comprehensive review of club operations following Ineos’ co-ownership deal.
Earlier in July, the club announced plans to cut 250 jobs as part of a broader cost-cutting initiative. This cost review is projected to save the club between £30m and £35m over two years, beginning in 2025.
United’s debt levels remain substantial, with the club carrying long-standing debts amounting to $650m (£496.52m). Additionally, the club disclosed ‘total current borrowings’ of £35.6m, and the balance of their revolving credit facility stood at £30m as of 30 June 2024.
Despite these challenges, the club anticipates generating between £650m and £670m in revenue next year, following a record £661.8m in revenue this year. Player wages also saw a 10% increase, reaching £364.7m.
In the 2023-24 season, United will compete in the Europa League, having won just one of their first three Premier League matches. The club bolstered its squad by signing five players this summer: Manuel Ugarte, Joshua Zirkzee, Leny Yoro, Matthijs de Ligt, and Noussair Mazraoui.
