Manchester United reported a £6.9 million operating loss for the first quarter of the 2024-25 financial year, largely attributed to their absence from the Champions League and costs tied to a significant redundancy programme.
The club’s eighth-place finish in the Premier League last season—their worst-ever placement—meant they missed out on the lucrative European competition, competing instead in the Europa League. This absence contributed to a 20.4% drop in broadcasting revenue, decreasing from £39.3m in the same quarter last year to £31.3m.
Commercial revenue also declined by 5.6%, from £90.4m to £85.3m, while matchday revenue saw a 3.3% drop, from £27.4m to £26.5m.
Restructuring Costs and Future Savings
United incurred £8.6m in exceptional costs, mainly due to a redundancy programme affecting 250 staff members as part of a broader operational restructuring. Despite these expenses, the club expects the restructuring to result in annual savings of £40m-£45m, with benefits anticipated in the 2025 and 2026 financial years.
The club’s wage bill for the quarter also dropped by 11.2% (£10.1m), attributed to changes in the first-team squad’s composition.
Challenges and Opportunities
United posted a £1.9m profit in the same quarter last year, but net losses for the period have reached £113.2m. However, the club expressed confidence in adhering to the Premier League’s profitability and sustainability rules, which cap non-allowable losses at £105m over three seasons.
Chief executive Omar Berrada emphasized that cost reductions and renovations to the club’s Carrington training ground are progressing on schedule. Additionally, a taskforce led by World Athletics president Lord Coe and former player Gary Neville is evaluating options for either redeveloping Old Trafford or constructing a new stadium.
“Once the taskforce delivers its recommendations, we will take time to digest and evaluate our options over the next year,” said Berrada.
Outlook
Despite financial challenges, United is predicting total revenue for 2025 of between £650m and £670m, a slight dip from their record £662m revenue reported last year.
While the financial figures reflect a challenging period, the club remains optimistic about its long-term trajectory, particularly with operational savings and potential stadium redevelopment on the horizon.
