Manchester United confident of financial fair play despite £113m loss | Manchester United

Manchester United are confident they can comply with Premier League and UEFA financial rules despite posting a net loss of £113.2m in their latest accounts.

It is the fifth consecutive year that United have made an annual loss, with a deficit of £115.5m in 2021-22 and £42.1m in 2022-23. Profitability and sustainability rules (PSR) allow for a loss of £105m over a three-year period, but within the rules certain deductions are allowed in relation to infrastructure investment, the academy and women's teams, among other things, which United believe means they will not breach spending rules. Everton and Nottingham Forest Received point deductions last season after exceeding the losses allowed in regards to PSR.

United achieved a club-record revenue of £661.8m in the year to 30 June and have implemented a series of cost-cutting measures, which the club's hierarchy hope will result in savings of between £40m and £45m a year. United announced plans in July to make 250 staff redundant as part of a restructuring under Sir Jim Ratcliffe, who bought a 25% stake in United in December and now runs football operations at Old Trafford. As part of the club's new structure under Ratcliffe, Omar Berrada has moved from Manchester City to become the new chief executive. Part of Berrada's remit is to put United on a more secure financial footing by running it more efficiently, while maximising footballing and commercial success.

The £73.1m increase in losses compared to last year can be partly attributed to overspending in the transfer market. Eight-figure sums were paid to sign Mason Mount, André Onana and Rasmus Højlund but the investment, which also contributed to a 10% increase in the wage bill to £364.7m, failed to secure the Champions League last season as United finished eighth. This will have a further knock-on effect on next year’s accounts, with United’s broadcasting revenue expected to fall by £30m due to playing in the Europa League rather than the Champions League.

There was a one-off expenditure of £47.8m relating to a strategic review, which eventually led to Ratcliffe buying the club and overseeing management changes that included the appointment of Dan Ashworth and Jason Wilcox to senior roles. Ratcliffe has pledged to inject $300m (£229m) into United by the end of the year, having already paid two-thirds of that amount. Work has begun on a £50m redevelopment of the club's Carrington training ground.

“The club remains committed to and complies with the Premier League's sustainability and profit standards and UEFA's financial fair play rules,” Berrada said. “We are working to achieve greater financial sustainability and make changes to our operations to make them more efficient and ensure we are using our resources to improve performance on the pitch.

“Ultimately, Manchester United’s strength lies in the passion and loyalty of our supporters. Our clear objective is to return the club to the very top of European football. Everyone at the club is aligned on a clear strategy to achieve sustained success both on and off the pitch, for the maximum benefit of our supporters, shareholders and a very diverse range of stakeholders.”