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United need to do better on the pitch to fix finances

Manchester United may be leaner and fitter in financial terms since the arrival of Sir Jim Ratcliffe, but the desired level of success on the pitch is still elusive.

Manchester United’s wage bill fell to £73.6million during the first quarter following the Old Trafford club’s restructuring programme and the loan exits of high earners Marcus Rashford and Jadon Sancho.

United’s latest quarterly financial results revealed total revenues fell year-on-year during the first three months of the 2025-26 financial year, largely due to Ruben Amorim’s side failing to qualify for Europe and two fewer games played at Old Trafford.  Commercial revenues were also affected by United’s lack of a training kit partner following the end of a deal with block chain platform Tezos, worth in excess of £20m a year.

Despite this, United’s wage-to-revenue ratio fell to a healthy 52.5 per cent, compared with 56 per cent for the same period last year. The club’s total spending on wages was £73.6m, down from £80.2m the previous year. It is United’s lowest first-quarter wage bill since 2020.

Omar Berrada, United’s chief executive, said that United’s first-quarter results, covering the period up until September 30, demonstrate why the club made the “difficult decision” to enter a restructuring programme.

A club in decline?

On the face of it, United’s Q1 results, taking in the first three months of the 2025-26 season, show a club in decline. Revenue is down (£140.3million, £2.8m less than a year ago) and losses are up (£8.4m pre-tax loss, after a £1.6m profit in 2024-25).

However, analysis  by the New York Times suggests that wouldn’t be telling the full tale and, despite an awful season on the pitch last year having a bearing on these figures, there’s reason for optimism. Or, at the very least, justification for what CEO Berrada termed “difficult decisions” made recently.

The most obvious impact is shown in United’s wage bill, which dropped to a five-year low. More importantly, wages as a proportion of revenue were down to a six-year low, even as the latter fell.

Hefty cuts since Sir Jim Ratcliffe’s arrival are having their impact, though United’s finances remain far from fixed. Improved on-field performance is vital; revenue is still projected to dip overall in 2025-26, and that’s not a theme that can continue without further cuts to spending, which United won’t want to make.   You don't have to be a financial or football genius to spot the potential contradiction.

Debt and interest payments

Lurking in the background remains massive debt, which totalled £749.2million on 30 September. The figure was roughly known already but is no less galling for that, as it is close to the highest United’s debt has ever been.

A further £10.9m in interest payments flowed out in the first quarter, reflecting ongoing annual bills around £40m. Those, combined with an unfavourable swing in exchange rates, ensured the Q1 bottom line showed a loss for the fifth year in six.

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