Manchester United’s full-year losses have risen after a tough season on the pitch and exceptional costs from Sir Jim Ratcliffe’s purchase of a minority stake in the club in December. Revenues increased 2.1 per cent to £661mn in the year ending on June 30, while operating expenses were £768.5mn, a 12.8 per cent rise.
United also crashed out of the lucrative Champions League in
the early stages and, despite winning the FA Cup, the men’s team slumped to
eighth in the domestic table, its worst result since the Premier League began
in 1992.
Full-year net losses rose to £113mn from £28.7mn the
previous year, partly because of higher spending on players and wages. The club
also incurred £47.8mn of exceptional costs, primarily from the sale of a 27.7
stake to petrochemicals billionaire Ratcliffe.
It expects to generate £650mn to £670mn in revenue this
season and adjusted earnings of £145mn to £160mn, against a figure of £147mn in
the year to the end of June.
United expects to cut about £40mn to £45mn a year from its
costs because of the restructuring, including the jobs cuts, which will cost
the club £10mn in redundancy payments. The puzzle for Ratcliffe and the Glazers
is how to restore United’s playing performance.
The club has not generated an annual profit since before the
Covid-19 pandemic but still brings in significantly higher revenues than most
of its English rivals. Despite its patchy performance on the pitch, United
continues to attract commercial partners, including Snapdragon. The subsidiary
of chipmaker Qualcomm has extended its shirt sponsorship with the club to 2029.
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