Adam Williams, Head of Football Finance and Governance Content for GRV Media, has provided an exclusive financial update on Manchester United to TBR Football.
Sir Jim Ratcliffe has implemented significant budget cuts as he aims to guide the Red Devils towards both financial and competitive stability.
During the summer transfer window, Manchester United spent over £230m on new players to assist Ruben Amorim. The coaching staff now faces increased expectations to secure a spot in European competitions, yet Adam Williams explains to TBR Football the financial implications if this fails to materialize.
Exclusive: Manchester United’s Financial Position Amid Potential European Exclusion
If Manchester United does not qualify for Europe this season, it would be disappointing for a club of its stature, but not financially disastrous—at least for now. Williams notes, “For the last recorded financial year, United lost £131m before tax. This figure is considerable even when considering the expenses tied to Ineos’ partial takeover.”
The club’s revenue stood at £662m, with wages reaching £365m and other expenses totaling £150m. Accounting for amortization—where clubs spread the financial impact of player transfers—added another £187m to their costs. This is a significant amount relative to the team’s on-field performance. Ratcliffe’s response has been a harsh approach to optimizing costs and driving revenue.
Upcoming quarterly financial reports will shed light on Ratcliffe’s strategies for the 2024/25 season. For the first nine months of this financial year, wages decreased to £234m compared to £277m the previous year, partially due to Champions League bonuses but also reflecting a broader intention to cut costs, leading to job reductions.
Matchday income surged thanks to a Europa League final run, and commercial revenue also saw a boost of around £15m. Collectively, these factors mean club-record revenue is on the horizon. However, projected losses for 2024/25 are expected to be more modest, estimated at about £29m compared to £77m from the previous year.
Importantly, under Premier League spending regulations, the £131m loss is less concerning when assessed under Red Football Limited’s accounts rather than the parent company. Although Manchester United may weather another season without European football, they are currently in a precarious financial position.
Possible Financial Strategies and Fan Reactions
Ratcliffe has identified a straightforward method to inject significant funds into the club, yet it risks provoking a negative response from fans. The club considered selling Kobbie Mainoo during the recent transfer window, with Tottenham reportedly interested. A potential £50m deal would yield substantial profit due to Mainoo’s academy background, but such a move may not sit well with the fanbase, which cherishes homegrown talent cultivated during Sir Alex Ferguson’s era.
