Manchester United’s financial report for the first quarter of the 2024-25 financial year reveals an operating loss of £6.9 million. This marks a significant downturn compared to the £1.9 million profit reported during the same period last year. The club attributes this deficit to two key factors: their absence from the lucrative Champions League and the costs associated with a substantial restructuring program.
The club’s failure to qualify for the Champions League, a consequence of finishing eighth in the Premier League – their lowest-ever finish – has had a dramatic impact on broadcasting revenue. This revenue stream plummeted by 20.4 percent, dropping from £39.3 million in the corresponding quarter of the previous year to £31.3 million. While their FA Cup victory secured participation in the Europa League, the financial difference between the two competitions remains substantial.
Further contributing to the loss, commercial revenue also experienced a decline of 5.6 percent, falling from £90.4 million to £85.3 million. Matchday revenue mirrored this downward trend, decreasing by 3.3 percent, from £27.4 million to £26.5 million. These combined revenue shortfalls paint a clear picture of the financial implications of a less successful season on the pitch.
Adding to the financial strain, Manchester United incurred an exceptional cost of £8.6 million related to “restructuring of the group’s operations, including the redundancy scheme implemented in the first quarter of financial year 2025.” This significant expense, however, is anticipated to yield long-term benefits. The club has previously stated that this restructuring is projected to generate savings of between £40 million and £45 million over the coming years, positively impacting the financial results for 2025 and 2026.
Despite the current loss and overall net losses of £113.2m for the period, Manchester United maintains confidence in its compliance with the Premier League’s profitability and sustainability rules. These rules stipulate a maximum of £105 million in non-allowable losses over a three-season period. The club’s wage bill also experienced a notable reduction, decreasing by £10.1 million (11.2 percent) to £80.2 million, primarily due to changes in the first-team squad composition.
Omar Berrada, Manchester United’s chief executive, affirmed that the club’s cost-cutting measures and headcount reductions are progressing as planned. He also highlighted ongoing work on renovating the Carrington training ground. Furthermore, Berrada confirmed the continuation of a task force, chaired by Lord Coe and including former player Gary Neville, which is evaluating the options for redeveloping Old Trafford or constructing a new stadium. The task force’s recommendations are expected to inform the club’s decision-making process in the coming year. The club projects total revenue for 2025 to be between £650 million and £670 million.
