Premier League
Manchester United Reports Wider Quarterly Loss In Last Season
In the third financial quarter of a challenging season, Manchester United reported increased losses and confirmed job cuts along with a rise in ticket prices.
Since British billionaire and INEOS boss Jim Ratcliffe purchased a 27.7% stake in United earlier this year and assumed control of its football operations, there have been numerous changes at the club.
The 20-time English champions finished in only eighth place in the Premier League and its management and owners have been reviewing all aspects of the club’s activities.
As part of a club-wide redundancy program, United intends to reduce approximately 250 jobs and is planning to increase ticket prices by around 5% for the upcoming season
While Erik ten Hag will stay on as head coach for the new season, the reshaped club has a new CEO and finance chief, alongside a new sporting director and technical director, poaching many of them from rivals to drive change.
“The club is undergoing a meaningful transition both on the pitch and off in the operations of the company, which should serve it well over the next few years,” said Tim Fidler, Portfolio Manager at Ariel Investments, the third-largest investor in the club’s publicly traded shares.
“Despite the disruption, we are optimistic that the club’s long-term prospects are in excellent health,” he added, saying plans to develop the Old Trafford stadium would be key.
United will play in the Europa League next season thanks to the FA Cup final win over local rival Manchester City in May.
Throughout the past decade, under the majority ownership of the Glazer family, United has faced criticism for their lavish spending on players, which includes acquisitions such as Argentina’s World Cup winner, Angel Di Maria, and Brazilian winger, Antony.
Players, and staff wages in the third quarter rose 7.3%, to 91.2 million pounds. Debt stood at $650 million at the end of March.
The transfer window has commenced quietly, with Ratcliffe emphasizing that United will refrain from excessive spending in their pursuit of major trophies.
Manchester United reported a net loss of 71.4 million pounds ($91.4 million) for the three months ended March 31st, compared with a loss of 5.6 million pounds a year earlier.
The expected annual revenue for the year ending in June is approximately 660 million pounds, with an adjusted core profit of around 140 million pounds, slightly below the upper limit within the previously provided range.
New CEO, Omar Berrada, will join United this weekend from Manchester City’s parent company City Football Group.
