MANCHESTER UNITED lost £113million last season – mainly due to transfer spending to bolster Erik ten Hag.
Despite record revenues of £661.8m in the financial year to June 30, United posted a nine-figure loss.
The club pin-pointed spending on wages and transfers as a significant factor in the latest annual financial results.
The club’s incomings last summer saw Mason Mount, Rasmus Hojlund, Andre Onana and Altay Bayindir join for a combined £183.5m including add-ons.
But despite United’s new managing structure under Sir Jim Ratcliffe green-lighting another £182m in transfer spending this summer – although sales recouped £87m – the Old Trafford outfit remain bullish they are safely inside Profitability and Sustainability Rules requirements.
And the Red Devils are pushing ahead with plans to axe 250 jobs – for an annual saving of up to £38m.
United’s published figures – including half a year under the new regime – showed the club made a record £137.1m through the gate, with 171,000 fans on the season ticket waiting list.
While Prem clubs are only allowed to make “permitted losses” of £105m over three seasons, football accountancy allows transfer fees paid to be “amortised” over contract lengths of up to five years while receipts such as the £26m received from Napoli for Scott McTominay can be counted in full.
Deductions are also made for investment and spending on stadium costs, women’s football and youth development, with United understood to remain confident they will not breach the PSR limit when their accounts are handed over to Prem bosses later this year.
Ratcliffe’s new-look upper-tier management included the appointments of chief executive officer Omar Berrada – who formerly held a senior role at Manchester City – sporting director Dan Ashworth and technical director Jason Wilcox.
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That was part of the club’s “strategic review” which brought what have been described as “one-off exceptional costs” of £47.8m as part of a long-term streamlining programme overseen by Ratcliffe.
Despite last season’s eighth-placed Prem finish – United’s worst league performance since 1990 – Ten Hag’s FA Cup triumph over City allowed him to keep his job, with summer arrivals including Matthijs de Ligt, Joshua Zirkzee, Manuel Ugarte, Noussair Mazraoui and Leny Yoro adding to his squad.
Ratcliffe has committed himself to a £230m cash injection by the end of the year, £50m of which will pay for the required upgrade of the club’s Carrington training base.
While failing to qualify for the Champions League will mean an estimated £30m European revenue drop, the club still anticipates income reaching up to £670m this season.
Berrada promised: “We are all extremely focused on working collectively to create a bright future with football success at the heart of it.
“Ultimately, the strength of Manchester United is driven by the passion and loyalty of our supporters.
“Our clear objective is to return the club to the top of European football.
“Everyone at the club is aligned on a clear strategy to deliver sustained success both on and off the pitch, for the ultimate benefit of our fans, shareholders, and hugely diverse range of stakeholders.”
