Manchester United have posted a loss of close to £7m for the first quarter of the year, along with decreases in revenues across the board – but say they remain confident of complying with Premier League and UEFA financial rules.
Stark figures outline the cost of failure to qualify for the Champions League and underline the fact that new manager Ruben Amorim will be unable to spend vast sums on a rebuild of the underperforming squad he inherited.
United remain on course for healthy annual revenues of between £650 to £670m, but have seen figures down in commercial, broadcasting and matchday income leading to a £6.9m loss for the period.
The club posted a £113.2m loss last year, while over the previous five years, losses total more than £370m.
Profit and sustainability rules (PSR) allow a £105m loss over a three-year period, but deductions are permitted around sums spent on infrastructure, the academy and women’s teams.
United posted record revenues of £661.8m last year and, as Mail Sport revealed, made 250 staff redundant as part of a series of cost-cutting measures following the January arrival of part-owner Sir Jim Ratcliffe and his Ineos group, which bosses hope will save between £40m and £45m a year.
United finished eighth last year, and broadcast revenue is expected to drop by £30m due to them being in the Europa League rather than the Champions League.
New chief executive Omar Berrada said: The season is now well underway for both our men’s and women’s team, and we are keen to ensure both are as competitive as possible.
‘We are delighted to have appointed Ruben Amorim as head coach of our men’s team and remain committed to returning Manchester United to the top of domestic and European football.
‘Our cost and headcount reductions remain on track, and we are pleased to have seen further commercial traction, and welcome new partner Heineken, through their Tiger brand.
‘Our renovation of the Carrington Training Centre is progressing well, while the Old Trafford Regeneration Task Force continues its work. Once it has delivered its recommendations, we will then take some time to digest them and evaluate all our options in the upcoming year.’
