Man Utd announce mixed financial results with worrying £25.8m update

Manchester United posted mixed financial results in the club’s first quarterly financial update of 2024, for the period ending on 30 September 2023.

The figures show encouraging signs with record first-quarter profits of £157.1m, which are up nine percent from the previous year. That has been driven by record matchday revenue income of £27.4m as well as a 3.4 percent increase in commercial revenue.

A new partnership with Wow Hydrate, and renewals with Konami, Concho Y Toro and Mlily, have helped boost figures, which sees a profit of £23.3m when excluding transfer fees. However, when factoring in transfer fees, the club’s net loss for the three-month period is £25.8m, due to the amortisation of previous arrivals and the signings of Andre Onana, Mason Mount and Rasmus Hojlund last summer.

Employee expenses rose to £90.3m due to higher Champions League wages, while United also revealed the sales of Anthony Elanga, Fred and Dean Henderson earned the club £29.5m in that period. The guidance for future revenue and incoming has also been lowered following United’s early exit from the Champions League.

The numbers are significant on the week when Everton and Nottingham Forest were charged with breaching the Premier League’s Profit and Sustainability Rules. United, like most clubs in the top flight, are wary of their financial picture, especially after such lavish spending in the last two summer windows.

The Red Devils have made an active decision to reduce the club’s wage bill in January, with Alvaro Fernandez, Donny van de Beek, Hannibal, Jadon Sancho and Joe Hugill heading out on loan, while Sergio Reguilon has also returned to parent club Tottenham Hotspur.

Ideally, United would like to bring in additions this transfer window, but the club’s uncertain financial situation means that might not be possible. At best, Erik ten Hag’s side will be limited to moves in the loan market.