Man Utd slump to another loss despite Ratcliffe cost-cutting
Manchester United have suffered another financial loss after a fall in revenues that reflects the men’s team’s worsening on-field struggles.
The club made a loss of £27.7m for the second quarter of their financial year, to 31 December – a 236 per cent swing into the red from the same period in 2023.
For the half year Manchester United’s loss was £26.3m, down almost 400 per cent, largely as a result of their absence from the Champions League.
It comes despite a raft of controversial cost-cutting measures implemented by minority owner Sir Jim Ratcliffe, including more than 200 redundancies.
The club lost more than £370m in the previous five seasons but insists it remains compliant with – and supportive of – Premier League profitability rules.
Manchester United’s total revenues were down 12 per cent to £198.7m for Q2 and 10.7 per cent to £341.8m for the half year.
The biggest single factor was a steep decline in broadcast income, which fell 42.1 per cent to £61.6m for Q2 and 36.2 per cent to £145.7m for the half year due to the lower value of media rights for the Europa League.
Manchester United’s men failed to qualify for this season’s Champions League for the second time in three years after finishing eighth in the Premier League – their worst domestic finish since 1990.
Man Utd forecast £650m annual revenue
They are on track for an even more disappointing season, however, currently sitting 15th in the table, although they remain in contention to retain the FA Cup.
Despite that, the club managed to increase matchday and commercial revenues and have reiterated that they expect to record annual revenue of £650m-£670m.
“We recognise the challenges in improving our men’s team’s league position and we are all working hard, collectively, to achieve that,” said CEO Omar Berrada.
“At the same time, we are pleased to have progressed to the knock-out phase of the Uefa Europa League and the fifth round of the FA Cup.
“Meanwhile, our women’s team is currently placed second in the Women’s Super League, and has reached the quarter-finals of the FA Cup.
“Our redevelopment of the Carrington Training Complex remains on track. We continue to work towards a decision on the future of Old Trafford as part of a wider regeneration programme, which has now attracted UK Government support.
“This follows the work of the Old Trafford Regeneration Task Force in demonstrating the significant economic potential of a revitalised area around a future stadium project.”