Manchester United in the red again – but confident they’ll escape PSR charge
Manchester United insist they are compliant with the Premier League’s PSR financial rules despite their losses totalling more than £270m for the last three years.
United made a loss of £113.2m last season despite generating club record revenue of £661.8m, in part due to costs associated with Sir Jim Ratcliffe’s minority investment.
English football’s controversial profitability and sustainability rules (PSRs) stipulate that clubs may not lose more than £105m over a rolling three-year period.
Everton and Nottingham Forest both suffered points deductions last season for PSR breaches, while Leicester City dodged punishment on a technicality despite also being charged.
Premier League regulations allow spending on infrastructure, youth teams, women’s teams and other “allowable” costs to be discounted from any losses, however.
United 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.”
The club’s latest year-end financial results, announced on Wednesday, follow losses of £42m in the previous season and £115.5m for 2021-22.
Revenue for 23-24 was boosted by club record income from both commercial streams and matchday, with ticket sales and attendances reaching a new high last season.
But eating into that were transfer fees, wages and £47.8m in costs associated with the strategic review that culminated in Ratcliffe buying a 27 per cent stake.
Billionaire Ineos founder Ratcliffe has since overhauled the club by hiring new senior staff and introducing cost-cutting measures, including making 250 staff redundant.
“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,” said United’s new executive Omar Berrada.
“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.”
In light of the business changes, United issued revenue guidance of £650m to £670m and adjusted EBITDA guidance of £145m to £160m for 2024-25.