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Manchester United reported losses of 113.2 million pounds (USD 148 million) in its latest accounts Wednesday for the year ending June 30, despite record revenues of 661.8 million pounds (USD 866 million).
The Premier League club, which was subject to a partial buyout from British billionaire Jim Ratcliffe this year, said the figures were in part because of increased spending on players.
The league’s profit and sustainability rules (PSR) allow clubs to lose a maximum of 105 million pounds (USD 137 million) over three years or face sanctions. Last season Everton and Nottingham Forest were handed points deductions for breaking those rules.
Despite the losses, United said it remained in compliance with the financial rules of both the league and Europe’s governing body, the Union of European Football Associations (UEFA).
PSR is related to more than just net losses, with allowances given for spending in areas such as infrastructure. United has undergone an extensive restructuring program following Ratcliffe’s investment of USD 1.3 billion for a 27.7% stake.
New chief executive Omar Berrada was hired from Manchester City and the storied club has implemented cost-saving initiatives that included staff redundancies of around 250 roles.
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,” Berrarda said Wednesday.
United made losses of 28.7 million pounds (USD 37.5 million) in 2022-23, 115.5 million pounds (USD 151 million) in 2021-22 and 92.2 million pounds (USD 120.5 million) in 2020-21.
The latest figures included costs of 47.8 million pounds (USD 62.4 million) primarily related to Ratcliffe’s investment.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
First Published: Sep 12 2024 | 9:40 AM IS
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