United’s losses increase amid Old Trafford planning

Manchester United has seen its total revenues increase to a new record of £661.8m (€783.9m/$866.3m), however its net loss has risen significantly to £113.2m.

The Premier League football club today (Wednesday) reported its financial results for the year ending June 30, 2024, as it continues to work on plans for its long-term stadium future amid broader restructuring under the new regime of Sir Jim Ratcliffe and his Ineos Group.

United’s total revenue increased marginally on last year’s figure of £648.4m, with commercial revenue remaining steady at £302.9m and broadcast increasing from £209.1m to £221.8m.

Matchday revenue showed a slight increase of £700,000 to £137.1m to hit a new record for the club. United said this was due to strong demand for hospitality offers, mostly offset by the men’s first team playing eight fewer home matches in the current year.

United achieved record ticket sales and attendance in 2023-24, including a doubling of women’s matchday revenues, and the highest ever number of paid global memberships sold at 438,000. For the 2024-25 season, general admission season tickets sold out at the fastest rate ever and the waiting list for season tickets has increased to 171,000.

In February, British billionaire Ratcliffe and Ineos, the petrochemicals company he founded and chairs, completed their deal for a minority stake in United, with the closure of the agreement seemingly allowing plans to advance for Old Trafford.

The net loss of £113.2m reported today compares to figures of £28.7m and £115.5m, respectively, in the prior two years. Beginning in the third quarter of fiscal 2024, the club commenced a business transformation plan to unlock operational efficiency with the ultimate goal of improving its financial sustainability and maximising the resources available to improve football operations.

These initiatives included installing a new executive leadership team covering both the business and sporting side, streamlining the organisational structure and, following a cost review by Interpath Advisory, the club implemented a significant cost rationalisation program.

In January, the club announced the appointment of new CEO Omar Berrada and a new football leadership team was installed under his leadership. Additional club executive leadership was also appointed in April, and the new non-football structure will be supported by a more streamlined organisation.

Beginning in March, the club engaged Interpath for a thorough club-wide cost review which identified substantial cost-savings. As a result of this change in strategy and with the intention of creating a leaner, agile and more sustainable structure, the club subsequently announced an employee redundancy program in July, which was concluded at the end of August and resulted in the rationalisation of the club’s employee base by approximately 250 roles across all departments.

In total, the club today said it expects to realise annualised cost savings of approximately £40m to £45m, before implementation costs of £10m. Due to timing and other contractual obligations, the club expects to realise these savings over fiscal years 2025 and 2026.

In terms of its stadium situation, United in March led the creation of the Old Trafford Regeneration Task Force to explore options for the revitalisation of the Old Trafford area in Greater Manchester.

On Monday, United entered into a strategic partnership with Trafford Council and the Greater Manchester Combined Authority (GMCA) to drive regeneration opportunities for the area around Old Trafford.

An advisory team, led by an independent director, will be appointed to support the ongoing work to develop an “ambitious vision” for the Trafford Wharfside area, with a focus on how Old Trafford can catalyse broader regeneration.

The appointed director and advisory team will ensure alignment with the existing Trafford Wharfside master-planning process and the work on the Old Trafford Regeneration Task Force, which was established to explore options for a new or redeveloped stadium.

United has not yet confirmed its plans for Old Trafford but reports emerged in July that the club has set its sights on building a new 100,000-capacity stadium next to the current ground instead of redeveloping the venue. A final decision is expected to be made by the end of the year.

United today said the task force has convened for four meetings, adding that “all options continue to be vetted” as it continues to seek input and feedback from all key stakeholders.