Manchester United finances 2024/25: Premier League club achieves record revenues but still makes £33m loss

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Here’s a summary and analysis of Manchester United’s 2024/25 finances — what went right, what didn’t, and what it might mean going forward:

📊 Key Numbers

✅ Improvements & Strengths

1. Record Revenues: Despite a poor season on the pitch (no Champions League, low Premier League finish), MUFC managed to set a new revenue high: £666.5m.
   • Commercial side strong: lucrative sponsorships (e.g. the front-of-shirt deal with Snapdragon) helped.
   • Matchday income rose, helped by ticketing, membership etc.
2. Reduced Losses: The net loss dropped significantly from ~£113.2m (2023/24) to ~£33m. That’s a big improvement.
3. Cost-Cutting Measures: Some real steps were taken to rein in expenses:
   • Wage bill reduced by about £51 million.
   • Overhead savings, staff redundancies, trimming of perks etc.
   • Operating loss narrowing also indicates tighter control.
4. Investment in Infrastructure: The club completed a £50m upgrade of the Carrington training complex on time and budget.

⚠️ Weaknesses & Risks

1. Still Making a Loss: Even with the cost cutting and record revenue, MUFC is not yet profitable — £33m net loss is an improvement but still a red figure.
2. No Champions League Football: Their 15th-place finish in the league meant no Champions League revenue. That has big knock-on effects on broadcast income, sponsorship valuations, etc.
3. Forecasted Revenue Dip: The club estimates 2025/26 revenue to fall to £640-£660 million from £666.5m. So margins are tight.
4. Redundancy Costs: While cutting jobs saves money long term, the immediate costs of severance (including the dismissal of key staff like managers etc.) weighed heavily. Eg: about £36.6m in compensation costs mentioned.
5. Fan & Brand Risk: Ticket price increases and cutting perks (e.g. staff canteen, etc.) can generate backlash among fans, affecting long-term goodwill. Also, the poorer performance on pitch doesn’t help.

🔍 Implications & What to Watch

• Premier League Profitability & Sustainability Rules (PSR): With cumulative losses, MUFC needs to ensure they remain in compliance. The narrowing of losses is positive in that regard.
• Need for On-Field Improvement: Because broadcast revenues, trophy/big match bonuses, commercial appeal all tie back to performance. The lack of Champions League is a drag. Improving league position and getting back into top European competition will be crucial.
• Balancing Revenue vs Costs: Continuing to find efficiencies while growing revenue streams (commercial, matchday, merchandising, maybe new stadium etc.) will be essential to move into consistent profit.
• Fan Relations: Price increases, job cuts etc. may help the balance sheet but could erode trust. The club may need to manage PR and fan engagement carefully.