Manchester United have reported a significant net loss of £113.2m for the financial year ending June 30, 2023, according to the club’s latest accounts.
This marks a continuing trend of financial difficulties for the club, following losses of £28.7m in the previous year and £115.5m in 2021-22. Over the last five years, United’s total losses have now exceeded £370m.
Despite the alarming figures, the club is not expected to breach the Premier League’s profit and sustainability rules. These regulations cap losses at £105m over a three-year period, but Manchester United can use ‘add backs’ to reduce the impact of certain expenditures. In contrast, Everton and Nottingham Forest faced points deductions for breaching the same rules.
Omar Berrada, Manchester United’s chief executive, assured that the club remains committed to staying within both Premier League and UEFA financial regulations.
This financial year covered a period of mixed results for the club, as they finished eighth in the Premier League, won the FA Cup, and finished bottom of their Champions League group. Additionally, the period saw Sir Jim Ratcliffe acquire a 27.7% stake in the club.
Manchester United cut jobs to reduce costs
The club announced 250 job cuts to cut costs, projected to save £30m to £35m over two years starting from 2025. United’s outstanding debt stands at £496.5m and £35.6m in current borrowings.
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Despite the losses, United expects to generate between £650m and £670m in revenue next year, following this year’s record-breaking revenue of £661.8m. The club’s wage bill also saw a 10% increase, reaching £364.7m.
In terms of transfers, United strengthened their squad this summer, bringing in Manuel Ugarte, Joshua Zirkzee, Leny Yoro, Matthijs de Ligt, and Noussair Mazraoui. The club will compete in the Europa League this season and has won one of their first three Premier League games.
