Adam Williams – Head of Football Finance and Governance Content for GRV Media – has now exclusively shared a financial update on Manchester United with TBR Football.
Sir Jim Ratcliffe has made vast cutbacks as he aims to steer the Red Devils back on the right path – both financially and competitively.
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Those at Old Trafford have not been afraid to spend – however – splashing over £230m on new signings during the summer transfer window to help Ruben Amorim.
The pressure is now on for the Portuguese tactician to, at least, get Manchester United back into a European competition, but Adam Williams tells TBR Football how the situation will look financially if that does not happen.
Exclusive: Manchester United will be “okay” if Ruben Amorim fails to qualify for Europe again but cash is tight
Failing to qualify for Europe once again this season would be woeful for a club the size of Manchester United, but it would not be financially catastrophic for the Red Devils – yet.
Williams informs TBR Football: “In terms of the business as a whole, United lost £131m before tax in 2023/24, the last financial year on record. That is a staggering amount, even accounting for the costs associated with Ineos’ part-takeover.
“Their revenue was £662m. Against that, you had wages of £365m and other expenses of £150m. Amortisation meanwhile – which is how football clubs spread the cost of transfers for accounting purposes – impacted the bottom line by £187m.
“That was an absolutely enormous cost base relative to what the squad was achieving on the pitch. Sir Jim Ratcliffe’s solution has been to brutally optimise costs and hike revenues.
“This week, we’re going to get their final quarterly financial report for the 2024/25 season. But, from the first nine months of the financial year, you can see what Ratcliffe has tried to do throughout the financial year.
“Wages were down to £234m for the nine months ending 31st March 2025, compared to £277m at the same time in 2024. Admittedly, some of that is because they were in the Champions League in 2023/24 with its associated bonuses for players, but it’s also a reflection of the wider plan to reduce costs. That’s why we saw so many job cuts.
“There has been a big spike in matchday income thanks to the run to the Europa League final, while commercial revenue had risen by about £15m for the year to date too. That means they are headed for club-record revenue. Add all of this together, factor in profit on player sales, and they are going to post a much more modest loss in 2024/25. It was about £29m when the Q3 accounts were released, compared to £77m the same time in 2024.
“When you add back PSR-exempt investment in infrastructure depreciation, the youth team, women’s football and so on, they are going to be okay under the Premier League’s spending rules this season, especially with their net spend of circa £150m factored in. You also have to consider that the £131m loss is massively reduced for PSR purposes because the Premier League looks at the accounts for Red Football Limited, a subsidiary business, rather than the parent company.
“This season is going to eat into their headroom. They probably have a bigger wage bill with the signings they have made, but their matchday income and broadcast income is going to shrink significantly with no European football at all. Even the fact they are out of the League Cup is going to deprive them of millions in matchday income. Amortisation too is going to be way up.
“You can see why Ratcliffe has outlined Project 90 – which is his plan to add £90m to the balance sheet annually through player trading, cutting costs, and striking more lucrative commercial deals.
“So while they will be okay if they go another season outside of Europe, they are treading water at this stage. Their brand and commercial revenue is going to start to suffer if they continue to underperform. We have already seen growth in that area slow down massively, and if they are playing poorly, it’s hard to generate any profit on player sales.
“As long as they are generating operating losses, that is money Ratcliffe or the Glazers have to find from somewhere to meet everyday costs. Clearly, Ineos are committed, but they don’t have unlimited liquid cash, and they are limited in terms of how much more external debt they can take on before it becomes unmanageable, especially with the stadium project on the horizon, which is also going to be debt-funded.”
Manchester United have an easy PSR win staring them in the face, but it would be emotional
Ratcliffe has one simple way to bring a large chunk of cash into Old Trafford, but it comes with the risk of angering the fanbase.
Manchester United considered selling Kobbie Mainoo during the summer transfer window, with Tottenham one side interested in the England international.
A £50m price tag was rumoured to be on the midfielder’s head, and if a bid of that amount arrived, it would represent 100% profit for Ratcliffe due to Mainoo’s status as an academy product.
However, Manchester United fans love to see academy graduates in the senior side, something that became a tradition of the club under Sir Alex Ferguson, so a sale would potentially spark backlash.