Manchester United suffers sixth straight defeat following roster adjustments
Manchester United, the iconic British football club, is gearing up for a slight reduction in revenue for the upcoming 2025-26 season. This forecast comes in the wake of the club's worst-ever Premier League season, which saw them miss out on any European competition.
The decline in revenue can be attributed to a 22% drop in broadcast revenues, a direct consequence of United's 15th place finish in the table and their absence from the Champions League. This setback has left a significant impact on the club's finances.
However, the club's commercial business remains strong, delivering appealing products and experiences for fans and best-in-class value to partners. A new sponsorship deal with Snapdragon drove a 10% increase in commercial income, offering a glimmer of hope amidst the financial challenges.
The club's revenue for the previous year, 2024-25, reached a record high of £666.5m, despite the challenging season. Yet, this success was overshadowed by a net loss of £33m for the same period.
Omar Berrada, the CEO leading the board of Manchester United since the 2024-25 financial year, expressed optimism about the club's future. He mentioned that planning continues for a proposed new stadium at Old Trafford, a project that promises to rejuvenate the club's infrastructure.
The club's matchday revenue also saw an increase, thanks to their run to the Europa League final. Despite these efforts, the total losses since 2019-20 amount to £391m.
Cost-cutting measures have been implemented to offset these losses. The cost of redundancies, including head coach Erik ten Hag and sporting director Dan Ashworth, amounted to £36.6m. The wage bill was reduced by £51.5m due to these measures.
Sir Jim Ratcliffe's cuts to staff head count and perks are yet to fully materialize, but their potential benefits are promising. The club's non-current borrowings remained at $650m, equivalent to £471.9m, representing a £39m improvement due to exchange rate fluctuations.
As United emerges from a period of structural and leadership change, the club's resilience, a hallmark of Manchester United, shines through. The club has demonstrated this resilience by generating record revenues despite the challenging year.
In a positive note, United completed a £50m upgrade of their training ground on time and within budget, signifying a step towards a brighter future for the Red Devils.
