Manchester United face PSR battle after posting £71.4m loss in latest quarterly accounts

Manchester United posted a £71.4million ($91.4m) net loss for the three months ended March 31, 2024.

Although there are still three months to account for in 2023-24 — the three months ended June 30, 2024 — United are sailing close to the wind when it comes to the Premier League’s profitability and sustainability rules (PSR).

Pre-tax losses are the starting point for PSR calculations. From their published figures, United lost £89.2m before tax during 2023-24 up until March, meaning their total loss over last season’s three-year PSR cycle currently stands at £271.4m.

The Premier League’s financial regulations allow clubs to incur a financial loss of £105m over a three-year period, at an average of £35m per year, and on the proviso that £90m is covered by by secure funding from the owners. Without the owner-secured funding, the three-year losses allowed are £15m.

As part of the PSR calculation, significant deductions will be made to United’s three-year loss for spending on infrastructure, women’s football, youth development, community work and Covid-19 related losses.

United will hope the measures they took to cut squad costs in January, namely sending Jadon Sancho on loan to Borussia Dortmund, is going to be enough to see them avoid breaching the rules.

Sancho joined Dortmund in January after a falling out with manager Erik ten Hag (Leon Kuegeler/Getty Images)

Sancho joined Dortmund in January after a falling out with manager Erik ten Hag (Leon Kuegeler/Getty Images)

Dortmund were paying the majority of Sancho’s wages, with United receiving an initial €3.5m loan fee and the potential to earn an additional €4m in add-ons.

Donny van de Beek also left on loan in January to join Eintracht Frankfurt. United received a loan fee for the midfielder and also had a large portion of his wages covered by the German side.



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Elsewhere, the accounts for the three months ended March 31 also show that overall revenue (£136.7m) is down 20 per cent from the same period last year (£170m). United note this drop is due to fewer matches — including nine fewer home games — than last year.

Despite the fall in overall revenue, across the first nine months of the 2023-24 financial year, overall revenues are up eight per cent — reflecting their participation in the Champions League.

United say they are forecast to reach a record £660m over the full financial year, which for the year ended June 30, 2023, totalled £648m.

The club’s operating costs for the three months ended March 31, 2024, climbed 15 per cent to £203.7m, with £91.2m of those being attributed to employment costs, reflecting new signings in the first-team squad.

The latest figures show, as reported by The Athletic in January, that United paid Raine Group $31.5m to help facilitate Sir Jim Ratcliffe’s £1.3bn bid to buy a 25 per cent stake in the club.



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(Michael Regan/Getty Images)

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