Manchester United announced losses of 113.2 million pounds ($148 million) for the year ending June 30 in their latest financial report, despite reaching record revenues of 661.8 million pounds ($866 million).
The Premier League team, which saw a partial buyout from British billionaire Jim Ratcliffe this year, explained that the losses were partly due to increased spending on players.
The league’s profit and sustainability rules (PSR) allow clubs to lose up to 105 million pounds ($137 million) over three years before facing penalties. Last season, Everton and Nottingham Forest received points deductions for breaching these rules.
Even with the losses, Manchester United stated that they are still following the financial rules set by both the league and UEFA. PSR also considers spending on things like infrastructure, not just net losses.
Following Ratcliffe’s $1.3 billion investment for a 27.7% stake, United has been restructuring. They hired new chief executive Omar Berrada from Manchester City and have implemented cost-saving measures, including laying off around 250 staff members.
“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,” Berrada said on Wednesday.
In previous years, United reported losses of 28.7 million pounds ($37.5 million) in 2022-23, 115.5 million pounds ($151 million) in 2021-22, and 92.2 million pounds ($120.5 million) in 2020-21.
The latest report also included costs of 47.8 million pounds ($62.4 million) mainly related to Ratcliffe’s investment.
