Manchester United report £113.2m loss despite record revenue for 2023/24
Manchester United have reported a loss of £113.2m for the year that ended on 30th June, despite delivering record revenue of £661.8m.
The club’s latest financial results mark the fifth successive year in which the club have, made an overall loss, taking the overall figure to £372m since 2019. United reported a loss of £28.7m for 2022/23, and £115.5m for the previous year.
Despite their 2023/24 figures, the Red Devils are confident that they have not fallen foul of the Premier League’s Profit and Sustainability Rules (PSR), which prohibit teams from making cumulative losses of greater than £105m over a three-year period.
The 20-time English champions have undergone significant changes over the last 12 months, most notably with the arrival of Sir Jim Ratcliffe as a part owner in February, after acquiring a 27.7% share in the club for £1.25bn.
Ratcliffe has committed to investing £229m into the club by the end of this year.
United recently announced a £50m renovation of the Carrington training complex, which got underway in June.
Earlier this week, the club also revealed that they had progressed with plans for a ‘world-class’ stadium, which has been a priority for Ratcliffe since he joined the club.
Reports in July suggested that Ratcliffe is favouring the construction of a new 100,000-seat venue which will cost a reported £2bn, and will take six years to compete.
According to United’s projections, the club is predicted to make between £650m and £670m in revenue in 2025.
The increase in wages has been cited as one of the main factors in the club’s loss, after these rose by £33.3m to £364.7m.
As part of the club’s cost-cutting measures under Ratcliffe, United made more than 250 members of staff redundant in July across all departments.
In January, United confirmed the appointment of former Manchester City executive as the clubs new CEO, who began his role in the summer.
In light of United’s latest financial results, Berrada 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.
“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.
“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.”
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