Manchester United debt stays above £1bn despite record revenue

Manchester United’s total debt remains above one billion pounds despite a major cost-cutting programme introduced under Sir Jim Ratcliffe, with the club’s latest accounts also showing record revenue and a return to operating profit.

United reported revenue of 677.6 million pounds for the year, alongside an operating profit of 22.6 million pounds. The figures represent a marked improvement on the 113.2 million pounds loss recorded in 2023-24, even though the club missed out on European football for the first time in a decade.

However, net finance costs rose by 228.3% to 69.6 million pounds. United said most of that increase was caused by losses linked to foreign exchange movements.

Football finance expert Kieran Maguire said the club’s cumulative finance costs had now exceeded one billion pounds since the Glazer family’s leveraged takeover in 2005.

The accounts also reveal that Manchester United spent 63.5 million pounds acquiring land for a proposed new stadium. The ground is expected to cost more than 2 billion pounds and is planned to be built 350 yards from Old Trafford.

As part of a summer refinancing, the club borrowed a further 94.14 million pounds. United has not explained how the remaining funds from that refinancing were used.

The club’s historic debt is 577.6 million pounds, while a further 111.4 million pounds remains outstanding on its revolving credit facility.

“We are pleased to have secured record revenues,” said chief executive Omar Berrada.

“This demonstrates the underlying strength of our business, and shows the direct impact of the work we have been doing over the past two years.

“While these results confirm that we are on the right trajectory, we will continue to take a disciplined approach to ensure our finances remain sustainable.

“With that financial sustainability in mind, we have strengthened both our men’s and women’s teams during the summer window and our men’s team has seen the return of Champions League football to Old Trafford.”

The club’s financial position comes amid continued supporter opposition to its investment decisions. United spent 148 million pounds on Carlos Baleba, Andrey Santos and Youri Tielemans during the transfer window.

Fans had wanted the club to sign another left-back and provide additional striking cover for Benjamin Sesko.

United are currently 12th in the Premier League and have already been eliminated from the EFL Cup.