Manchester United's overall debt remains over £1bn despite extensive cost-cutting measures implemented by Sir Jim Ratcliffe. The club has confirmed it has spent £63.5m on land for the team's new stadium. This comes amid a backdrop of fan protests and a disappointing start to the season, with United currently 12th in the Premier League and already out of the EFL Cup.
Manchester United has announced record revenues of £677.6m and a £22.6m operating profit, representing a significant shift from the £113.2m loss in 2023-24. The club's net finance costs for the year were £69.6m, an increase of 228.3%, largely due to a foreign exchange loss. According to football finance expert Kieran Maguire, net finance costs alone have now exceeded £1bn since the leveraged Glazer family buyout in 2005.
The club's historic debt stands at £577.6m, with an additional £111.4m outstanding on its revolving credit facility and outstanding transfer fees representing approximately 75% of the £473m listed and being owed as 'trade and other payables'. Manchester United's overall debt, while reducing from £1.3bn at the end of December, is still over £1bn. The new stadium, to be built 350 yards away from Old Trafford, is likely to cost in excess of £2bn.
Manchester United spent £148m on three new signings - Carlos Baleba, Andrey Santos, and Youri Tielemans - which was less than a third of the £458m Manchester City invested in their squad and lower even than promoted Ipswich. Fans are angry about the lack of additional investment in the first-team squad, particularly in a left-back to provide competition for Luke Shaw and striking support for Benjamin Sesko.
Chief executive Omar Berrada stated that the club is pleased to have secured record revenues, demonstrating the underlying strength of the business. Berrada emphasized that the club will continue to take a disciplined approach to ensure financial sustainability. Manchester United has also been criticized for a lack of investment in the Women's Super League squad, who currently sit second bottom of the table with one point from three games.
Sir Jim Ratcliffe previously argued that the club had to take strong action to slash losses, resulting in 450 people losing their jobs due to redundancies. The club has confirmed that its latest set of salary costs have reduced by £11.3m to £302m, primarily due to changes in the make-up of the men's first-team squad and savings associated with headcount reduction programs.
Manchester United's stadium plans have been a point of contention, with the club spending £63.5m of an additional $125m (£94.14m) added to their historic debt during a summer refinancing move on land for their new stadium. The club has not explained what it has done with the remainder. The stadium is expected to be a significant investment, with the club aiming to secure naming rights for the new stadium.
Key points
- Manchester United's debt remains over £1bn despite record revenues.
- The club has spent £63.5m on land for the team's new stadium.
- Manchester United's net finance costs have exceeded £1bn since the Glazer family buyout in 2005.
