Manchester United announced record revenues of £666.5m but reported a £33m loss due to lack of Champions League football and restructuring costs. Sir Jim Ratcliffe’s changes aim to stabilize the club’s finances. The club projects revenues between £640m and £660m for the next financial year.
Manchester United have announced record revenues of £666.5 million for the last season, but the club still reported a loss of £33 million for the financial year ending June 30, 2025. This financial performance reflects a year in which the club did not participate in the Champions League and finished a disappointing 15th in the Premier League. Despite these setbacks on the pitch, the club's revenue marginally increased by 0.7%.
The accounts reveal that United's operating loss decreased significantly from £69.3 million to £18.4 million compared to the previous 12 months. Overall losses also dropped from £113.2 million to £33 million. These improvements come after co-owner Sir Jim Ratcliffe implemented extensive changes at the club. In March, he described the club as having "gone off the rails" as a business. Ratcliffe warned that United would have faced severe financial difficulties, potentially going "bust at Christmas," had they not made "really tough decisions." His intervention appears to have stabilized the financial situation, although the club still faces challenges.
Chief Executive Omar Berrada commented on the financial results and the club's future strategy. "On the field, we are pleased with the additions we have made to our men’s and women’s first-team squads over the summer, as we build for the long term," he stated. "Off the field, we are emerging from a period of structural and leadership change with a refreshed, streamlined organization equipped to deliver on our sporting and commercial objectives."
Berrada emphasized the club's resilience in generating record revenues during a challenging period. "To have generated record revenues during such a challenging year for the club demonstrates the resilience which is a hallmark of Manchester United," he said. He also highlighted the potential for further financial improvement as the club begins to benefit from its cost-reduction program, which will support the primary goal of achieving success on the pitch.
Despite the current financial losses, Manchester United is projecting revenues between £640 million and £660 million for the next financial year. However, this forecast comes with the reality that the club will be without European football for the first time since the 2014-15 season. The club's earnings before interest, tax, depreciation, and amortization (EBITDA) were £182.8 million, and they anticipate this figure to be between £180 million and £200 million in the coming year.
The financial results also indicated that broadcasting revenue decreased by £48.9 million to £172.9 million due to the men’s team's participation in the Europa League instead of the more lucrative Champions League. This change, along with player departures and the ongoing restructuring process, led to a reduction in employee benefit expenses by £51.5 million to £313.2 million. These cost-saving measures reflect the club's efforts to streamline operations and improve financial efficiency.
Manchester United achieved record commercial revenues of £333.3 million, largely due to their front-of-shirt deal with Snapdragon, and record matchday revenues of £160.3 million. These figures highlight the continued strength of the club's brand and its ability to generate income through various commercial activities. The club also reported £36.6 million in exceptional items, including payoffs to employees as part of their "transformation plan" and to the former manager Erik ten Hag and his staff. The payout of Erik ten Hag shows the price a club has to pay for underperforming.
The club's principal debt remains at $650 million, but fluctuations in the exchange rate have resulted in a decrease in sterling terms from £511 million to £471.9 million. This provides some relief in managing the club's debt obligations. It is unclear who will be the next coach to be sacked. Manchester United will be hoping to improve it's performance next year, and climb into a Champions League spot.