LONDON - Manchester United has posted net losses of £113.2 million (US$148 million) in its latest financial report.
Despite the significant loss, the club maintains that it remains in compliance with Premier League financial regulations, reported PA Media/dpa news.
The Red Devils’ latest losses for the year ending June 30 follows a £115.5 million loss in 2021-22 and a £42.1 million loss in 2022-23.
The Premier League’s profitability and sustainability rules (PSR) allow a maximum loss of £105 million over a three-season period, but within that certain losses are deemed ‘allowable’ such as infrastructure, youth team and women’s team spending.
United sources concede the losses are in part due to transfer and wage spending over the period, but a club release alongside the results said: "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.” Everton and Nottingham Forest both incurred points deductions last season after being found in breach of PSR.
Included in United’s newly reported losses were costs of £47.8 million linked to the strategic review embarked upon by the club’s owners, the Glazer family, in November 2022 which ultimately resulted in Jim Ratcliffe acquiring a 27.7 per cent stake in the club.
The club earned £661.8 million in revenue, a United record.
The club are working to put themselves on a more sustainable financial footing and have instigated a number of cost-saving measures, including a redundancy programme which cut 250 jobs from headcount across all departments by the end of August. United anticipate severance charges related to the redundancies will cost around £10 million.
The cost-saving measures taken together are expected to save between £40-45 million in total and the club anticipate that will have a positive impact on United’s financial results for 2025 and 2026.
The costs associated with the strategic review are viewed positively within the club as a necessary step to bring about structural change and to attract investment.
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.” - BERNAMA-PA MEDIA/dpa