Manchester United have now confirmed that their latest set of full club accounts demonstrate a net loss of £113.2 million in the 2023/24 calendar year leading to June 30.
Fans of the Red Devil’s will be aware that this follows on from losses in 2022/23 of £28.7 million, and £115.5 million in 2021/22. The latest release takes their total losses over the past five years to over £370 million, but it should be remembered that these are club losses, they are not losses specific to Profit and Sustainability Rules, and the club have stated that they are very confident that they will continue to comply with those regulations for the relevant three year period.
Premier League rules state that clubs cannot lose in excess of £105 million over a three year period, and given their European participation, they also have to comply with UEFA’s own version of the rules which are slightly tighter in application.
Chief executive Omar Berrada has stated.
“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.”
Financial Fair Play (or PSR to be correct) is a hot topic in the English top flight right now as last season the Premier League developed some teeth and handed points deductions to Everton and Nottingham Forest for their own breaches, and also tried to charge Leicester City whilst they were in the Championship. The 115 charges against Pep Guardiola’s Manchester City side also continues to be the elephant in the room, and whatever the outcome of that eventual case, it is going to be a monumental game changer one way or another.
United’s losses were not unexpected in fairness, as having taken over all football operations with his investment for 27.7% of the clubs’ shares, Sir Jim Ratcliffe had already confirmed that director Sir Dave Brailsford’s full review into Old Trafford would lead to 250 job losses as they looked to slash costs, reduce their losses and pay down their debt borrowing.
Regulars at Old Trafford have long made their thoughts known about the Glazer ownership and the manner in which they choose to fund the club, whilst they continue to slip further away from their glory days under Sir Alex Ferguson, so Ratcliffe does have a job on his hand and he will continue to have leeway within the fanbase as he implements changes.
However, another poor start to the season and only the Europa League to look forward to will already have eyebrows raised, and having again recorded a record profit, fans will continue to wonder where all the money has gone – because you can easily argue it has not been well spent on the pitch.