Manchester United Reports 12% Decrease in Revenue for Last Quarter

Manchester United has announced a 12% decrease in revenue for the final three months of 2024, with the club taking in £198.7m compared to £225.8m for the same period in 2023. The decline was largely driven by a 42% drop in broadcast revenues, which fell from £106.4m to £61.6m.

According to the club, the decrease in broadcast revenue was due to Manchester United’s participation in the Europa League instead of the Champions League during the 2023-24 season. The club reported an operating profit of £3.1m, down from £27.5m over the same period in 2023.

Manchester United’s debt increased from £506.6m to £515.7m due to “unfavourable” exchange rate changes. The club’s financial results also included a £14.5m ‘exceptional item’ figure, comprising £10.4m spent on terminating the contract of former manager Erik ten Hag and his coaching staff, as well as £4.1m related to the departure of former sporting director Dan Ashworth.

Commercial revenue saw an 18.5% increase from £71.8m to £85.1m, largely due to the front-of-shirt partnership with Snapdragon. Omar Berrada, Manchester United’s chief executive officer, acknowledged the challenges facing the club, stating, “We recognise the challenges in improving our men’s team’s league position and we are all working hard, collectively, to achieve that.”

The club’s redevelopment of the training ground is reportedly “on track,” according to Berrada. The £11m cost of appointing new head coach Ruben Amorim and his staff is not specifically mentioned in the financial results, as the cost is being spread over their two-and-a-half-year contracts.

Wednesday’s financial results follow the club’s operating loss of £6.9m in the first quarter, which was also attributed to the difference in playing in the Europa League versus the Champions League. Sir Jim Ratcliffe, United’s co-owner, has a 28.94% stake in the club through his Ineos group.

The club has warned that “difficult” decisions would need to be taken as they are “close” to breaching the Premier League’s profit and sustainability rules. Under these rules, clubs can record a maximum loss of £105m over a three-year reporting period. Manchester United’s losses over the past five years total over £370m, although certain costs, such as infrastructure costs, youth development, and community spending, do not count towards profit and sustainability rule calculations.

Since Ratcliffe’s investment was announced in December 2023, Manchester United has made around 250 staff redundancies. The club expects the restructuring decisions to lead to savings of between £30m-£40m.