Manchester United today reported a record annual revenue of £661.755m for the year ending 30 June 2024. Despite the impressive figures, the club faced substantial pre-tax losses of £130.724m due to major investments and organisational changes.
The increase in revenue, up from £648.401m the previous year, was driven by record commercial and matchday earnings. However, the losses were more pronounced compared to the £32.574m deficit reported in 2023. The club confirmed that these figures comply with Premier League and UEFA financial regulations.
The substantial losses stem from extensive investments in football and training infrastructure, as well as the implementation of a new leadership team and player acquisitions. In the third quarter of fiscal 2024, the club initiated a business transformation plan aimed at enhancing operational efficiency and financial sustainability. This plan included installing a new executive leadership team, streamlining the organisational structure, and undertaking a comprehensive cost review by Interpath Advisory, leading to a significant cost rationalisation programme.
In January 2024, the appointment of new CEO Omar Berrada was followed by the establishment of a new football leadership team, including Sporting Director Dan Ashworth and Technical Director Jason Wilcox. Additional executive appointments were made in April, leading to a more streamlined organisational structure. By conducting a thorough cost review starting in March 2024, substantial cost savings were identified, resulting in an employee redundancy programme concluded in August 2024, which saw a reduction of approximately 250 roles.
The club anticipates annualised cost savings of £40m to £45m, albeit with £10m in redundancy implementation costs. Savings are expected to be realised over fiscal years 2025 and 2026, considering timing and contractual obligations. Berrada highlighted a busy off-season, successful training camps, and significant investments in both men’s and women’s teams, including facility upgrades at Carrington.
Berrada stated the club’s commitment to financial sustainability and enhanced on-pitch performance, emphasising a new revenue guidance of £650m to £670m for fiscal 2025, with adjusted EBITDA expectations between £145m and £160m. Exceptional costs related to the headcount reduction programme are estimated at approximately £10m, while non-player capital expenditures are forecasted to total £60m, including upgrades to the main players’ building at Carrington.
In March 2024, the club spearheaded the Old Trafford Regeneration Task Force to explore revitalisation options for the Old Trafford area. The task force has convened four times to date and remains committed to engaging all key stakeholders in revitalisation plans.
Despite the financial challenges, the club remains compliant with both Premier League’s Profit and Sustainability Rules and UEFA’s Financial Fair Play Regulations. The commercial revenue for the year matched the prior year at £302.9m, while sponsorship revenue fell by 6.2% to £177.8m. Retail, Merchandising, Apparel & Product Licensing revenue increased by 10.3% to £125.1m, driven by an extended agreement with the kit supplier and record Megastore performance. Broadcasting revenue rose by 6.1% to £221.8m due to participation in the UEFA Champions League, although matchday revenue saw a marginal increase to £137.1m, despite fewer home matches.
Employee benefit expenses increased by 10% to £364.7m, attributed to participation in the UEFA Champions League. Exceptional items for the year, primarily related to the sale of voting rights and compensation, totalled £47.8m. Non-current borrowings were reported at £511m, slightly up from the previous year, with current borrowings notably reduced to £35.6m.
As Manchester United navigates through a period of transformation and investment, the club remains determined to achieve financial sustainability and return to the pinnacle of European football. The ongoing changes and strategic investments are poised to enhance both operational and on-pitch performance, aligning with the club’s commitment to its supporters and stakeholders.
