Manchester Untied delivered an alarming message about their finances on Thursday.
In response to a letter from fan groups about increasing ticket prices at Old Trafford, United responded by saying: “We are currently making a significant loss each year – totalling over £300m in the past three years.
“This is not sustainable and if we do not act now we are in danger of failing to comply with PSR/FFP requirements in future years and significantly impacting our ability to compete on the pitch.”
Since Sir Jim Ratcliffe and INEOS arrived at the club as investors, there have been a series of stories about cut-backs and savings being made. There have been 250 redundancies to club staff, funds for club legends cut or reduced and restructuring behind the scenes.
It’s been short-term pain with the ambition of long-term gain – United believe that restructuring could lead to a £40m saving in the future. The situation has also been a theme of this January transfer window, with homegrown players such as Alejandro Garnacho linked with possible sales.
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Sky Sports News’ Senior Reporter Kaveh Solhekol discusses Chelsea’s interest in Manchester United youngster Alejandro Garnacho, saying it makes ‘a lot of sense’ for the Blues and that a move is possible in the January transfer window.
But the urgency of the need to scale back has been highlighted by this latest note from the club, especially with Ruben Amorim’s team languishing in the bottom half of the Premier League table and looking set to miss out on qualification for lucrative Champions League football once again.
“It’s a serious situation, in their own words,” says Sky Sports News chief reporter Kaveh Solhekol.
“United reported a net loss of £113m in their latest accounts and they have lost more than £300m over the past three years. New co-owner Sir Jim Ratcliffe has been laying off staff, cutting spending and raising ticket prices.
“Every season United spend out of the Champions League hits them hard in the pocket. Judging by their league position, things are going to get worse before they get better.”
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Sky Sports News’ Senior Reporter Kaveh Solhekol discusses how clubs are improving revenue by increasing ticket prices and getting rid of concessions, and explains the reply Manchester United sent to their supporters group regarding this.
Interestingly, this statement about the need to tighten belts comes in a week in which United were listed fourth in the Deloitte Football Money League 2025, with their £651.3m revenue only exceeded by Real Madrid, Manchester City and Paris Saint-Germain.
But poor sporting performance has taken its toll. As well as the Champions League absences there have been major transfer outlays in recent seasons, with over £600m spent on players for Erik ten Hag. United also had to pay out compensation for the Dutchman after extending his contract in the summer and then sacking him 12 games into this campaign.
With Amorim seemingly needing a refresh of the squad and for the club to bring in players to suit his different system and style of play, United may once again be forced to spend their way out of trouble. Which brings us back to the increased ticket prices and controversial cuts.
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Kris Boyd was critical of Man United following their late win over Rangers in the Europa League, saying they have to be ‘a lot better’ and that they still have a long way to go to compete at the top level.
The United supporters’ groups have labelled the ticket price hikes in recent years as ‘largely inconsequential’ in the grand scheme of the club’s huge revenue.
“The co-owners probably see the price rises as a marginal gain,” says Solhekol.
“United have been saddled with huge debts and they need to comply with Premier League and UEFA financial regulations.
“Broadly speaking, the more you earn, the more you can spend – especially under the Premier League’s new squad cost control rules coming in next season.
“United need to cut costs and maximise revenues. Ticket price rises, mass redundancies and cost cutting are all controversial when fans can point to players who are earning fortunes and not performing on the pitch.
“Many clubs have owners who have put significant funds into their clubs. Being owned by the Glazer family has cost United more than £1bn. United’s long-term debt – the money the Glazers borrowed 20 years ago to buy the club – is still $650m (£526m).”
Could Man Utd breach PSR/FFP rules?
On the face of it, United’s claim they have lost £300m over the past three years would put them in breach of PSR rules, which only permit a £105m loss over three seasons.
However, within those rules there are allowances, with clubs able to stretch transfer fees paid over multiple accounting periods and write off costs which are deemed to be “in the general interests of football”, such as infrastructure, women’s teams and academies.
Earlier this month we reported no Premier League clubs were charged with PSR breaches for the three-year period between 2021-2024.
Importantly, PSR is set to be replaced by Squad Cost Rules next season, which will limit club spending to a percentage of their revenue.
So, for now, United are within the limits. But as the club itself has warned, decisive steps are required right now to avoid punishment in the future.
