Manchester Untied issued a worrying message regarding their finances on Thursday.
In response to a letter from a fan group regarding the increase in ticket prices at Old Trafford, United said: ‘We are currently incurring significant losses each year, totaling more than £300m over the past three years.
“This is not sustainable and if we do not act now we risk not being able to comply with PSR/FFP requirements in the future, which will have a significant impact on our ability to compete on the pitch.”
Since Sir Jim Ratcliffe and INEOS arrived at the club as investors, there has been a series of talks about job cuts and savings being made. 250 club staff were made redundant, funding for Club Legends was cut or reduced, and behind-the-scenes restructuring took place.
Short-term pain comes with long-term profit ambitions, but United believe the restructuring could lead to future savings of £40m. This situation has been a theme in the January transfer window this year, with the possibility of selling fresh players such as Alejandro Garnacho emerging.
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Sky Sports News senior correspondent Kaveh Solhekor discusses Chelsea’s interest in Manchester United youngster Alejandro Garnacho, saying it makes “a lot of sense” for the Blues to make a move in the January transfer window. He said there is a possibility.
However, this latest statement from the club highlights the need for downsizing, especially as Ruben Amorim’s side languish in the bottom half of the Premier League and look set to miss out on lucrative Champions League qualification once again. The urgency of this became clear. .
“In their own words, this is a serious situation,” says Sky Sports News chief reporter Kaveh Solhekol.
“United reported a net loss of £113m in their latest accounts, and have posted losses of more than £300m over the past three years. New co-owner Sir Jim Ratcliffe has made staff redundant. , are cutting spending and increasing ticket prices.”
“Every season that United is out of the Champions League is a huge blow to them. Judging by their league position, things will get worse before they get better.”
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Sky Sports News senior reporter Kabe Solhekol discusses how clubs are improving their bottom line by increasing ticket prices and removing concessions, and explains Manchester United’s response to supporters’ groups in this regard. do.
Interestingly, this statement about the need to tighten belts comes in the week that United were ranked fourth in the Deloitte Football Money League 2025, with their £651.3m revenue surpassed by Real. Only Madrid, Manchester City and Paris Saint-Germain.
However, the decline in sports performance is taking its toll. As well as missing out on the Champions League, they have also seen huge transfer fees in recent seasons, with over £600m spent on signing Erik ten Hag. United also had to pay compensation to the Dutchman, who extended his contract in the summer and was released 12 games into this season.
United will be forced to bide their time getting out of trouble once again, as Amorim appears to need a revamp of the squad and the club will need to bring in players to suit his different system and style of play. Maybe. So, back to the ticket price hikes and controversial price cuts.
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Manager Kris Boyd criticized Man United after their side’s late Europa League win over Rangers, saying they needed to be “much better” and had a long way to go to compete at the top level. Ta.
United’s supporters’ organization has described recent ticket price increases as being of “little significance” in the grand scheme of the club’s huge incomes.
“The co-owners probably view the price increase as a small profit,” Solhekol said.
“United have huge debts and must comply with Premier League and UEFA financial regulations.
“Broadly speaking, the more you earn, the more you can spend, especially under the Premier League’s new team cost control rules starting next season.
“United need to cut costs and maximize revenue. When fans point out players who are earning huge amounts of money but are not performing on the pitch, they are faced with increased ticket prices, mass layoffs, Any cost cutting will be controversial.
“Many clubs have owners who have invested huge sums of money into the club. The Glazer family ownership has cost United more than £1 billion. I still have $650 of the money I borrowed to buy the club before (£526m). ”
Could Manchester United breach PSR/FFP rules?
On the face of it, United’s claim that they have lost £300m over the past three years would be in breach of the PSR rules, which only allow losses of £105m over three seasons.
However, allowances are set out within these rules, allowing clubs to extend transfer fees paid over multiple accounting periods, and to pay for infrastructure, women’s teams, academies, etc. that are “in the general interest of football”. It is possible to amortize the deemed expenses.
Earlier this month, we reported that no Premier League club had been charged with breaching the PSR in the three years between 2021 and 2024.
Importantly, the PSR is set to be replaced by a team cost rule from next season, which will limit club spending to a certain percentage of their revenue.
So United are within that limit for now. However, as the club itself has warned, decisive action is needed now to avoid future punishment.
