Premier League
Man United Chief Releases Statement As Club Reveals Full-Year Financial Results
Manchester United CEO, Omar Berrada has set out the vision for the new management team at Old Trafford following the release of the club’s full-year financial results.
Manchester United are confident they comply with Premier League and UEFA financial rules despite posting a £113.2m net loss in their latest accounts.
United has recorded an annual loss for the fifth consecutive year, posting a deficit of £115.5 million for the 2021-22 season and £42.1 million for the 2022-23 season
Profitability and sustainability rules (PSR) allow for a loss of up to £105 million over three years. Within these regulations, specific deductions are permitted for investments in infrastructure, the academy, women’s teams, and other areas.
United believes that these deductions will help ensure they remain within spending regulations.
Everton and Nottingham Forest received points deductions last season after exceeding permitted losses in regards to PSR.
United achieved club-record revenues of £661.8m in the year ending 30 June and have engaged in a number of cost-cutting measures, which the club hierarchy hopes will lead to savings between £40m and £45m per year.
In July, United announced plans to lay off 250 employees as part of a restructuring effort led by Sir Jim Ratcliffe, who acquired a 25% stake in the club last December and now oversees football operations at Old Trafford. As part of this revamped structure, Omar Berrada moved from Manchester City to take on the role of the new chief executive.
Part of Berrada’s remit is to put United on safer financial ground by making them operate more efficiently while maximizing football and commercial success.
The £73.1 million rise in losses compared to the previous year can be attributed to excessive spending in the transfer market. United eight-figure fees were paid to sign Mason Mount, André Onana, and Rasmus Højlund.
However, this investment, which also led to a 10% increase in the wage bill to £364.7 million, did not yield the results, as United finished eighth and failed to qualify for Champions League football last season.
This will have a further knock-on effect on next year’s accounts, with United’s broadcast revenue expected to drop by £30m due to them being in the Europa League rather than the Champions League.
There was a one-off cost of £47.8m relating to a strategic review, which ultimately led to Ratcliffe buying into the club and overseeing management changes that included Dan Ashworth and Jason Wilcox being appointed to senior roles.
Ratcliffe has pledged to invest $300 million (£229m) into United by the end of the calendar year, having already contributed two-thirds of that sum.
Additionally, preparations are underway for £50 million redevelopment plans at the club’s Carrington training ground.
“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,” said Berrada.
“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 enhance on-pitch performance.
“Ultimately, the strength of Manchester United is driven by the passion and loyalty of our supporters. Our clear objective is to return the club to the top of European football.
“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.”
The 20-time English champions have lost two of their three Premier League matches at the start of the new season, including a 3-0 defeat to Liverpool at Old Trafford before the international break.
