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Bean counters give United shares double figure boost

Manchester United’s New York-listed shares jumped 11 per cent in early trading on Friday, in a rare sign of support for the English football club’s owners after it reported a sharp fall in costs and raised its earnings guidance. 

The club, co-owned by the American Glazer family and British billionaire Sir Jim Ratcliffe, reported a net loss of £2.7mn in the three months to March 31, after a loss of £71.5mn a year earlier. It said it expected to make adjusted earnings before interest, tax, depreciation and amortisation in its full financial year to the end of June of between £180mn and £190mn, up from previous guidance of £145mn to £160mn.

Investors have been wary of Manchester United under Ratcliffe, who took a minority stake in the club in February 2024 and assumed control of sporting operations. Despite Friday’s bounce, the shares are down almost a third from their peak in the month of his arrival.

Fans have criticised Ratcliffe for raising ticket prices, while staff morale has suffered due to job losses and other cuts. The club recently slumped to its worst English top-flight finish since the 1970s and lost the Europa League final to Tottenham Hotspur, adding to its woes.

Ratcliffe has stressed the need to save money at the club, which has not made a profit since before the coronavirus pandemic. Friday’s results showed a more than 17 per cent increase in revenues to about £160mn in the three months to March 31, bolstered by a 50 per cent surge in match-day earnings and smaller increases from broadcasting and commercial partners.

Operating expenses fell 20 per cent to £162mn, with wages and other employee benefits falling 22 per cent from a year earlier to £71mn. Attacking players Marcus Rashford, Jadon Sancho and Antony left the club on loan in January, easing its wage costs. Wages were further contained when the club failed to qualify for the European elite Champions League, competing instead in the lower-tier Europa League. Under Ratcliffe,

United has slashed non-playing staff and stopped giving free lunches to those who remain. Although fans have praised the Ineos founder for strengthening the club’s balance sheet with a $300mn cash injection last year, Ratcliffe is battling to improve United’s finances. After failing to qualify for European competition next season, the men’s team jetted out to Kuala Lumpur and Hong Kong for a lucrative tour to boost revenues. Despite Ratcliffe’s contribution, United’s cash balance was £73mn at the end of March.

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