Man Utd post £13m operating profit - despite overall debt climbing

Manchester United recorded an operating profit of £13m in the opening quarter of the financial year, a sharp turnaround from the £7m loss posted in the same period last year.

Chief executive Omar Berrada credited the improvement to “the difficult decisions made in the past year” under Sir Jim Ratcliffe ’s direction.

Despite the stronger operating figures, the club’s overall debt has climbed to an unprecedented £1.29bn. Quarterly revenue slipped to £140.3m from £143.1m, while the club’s revolving credit facility increased by £35.7m to £268m. Long-term borrowings remained steady at £650m.

Since Ratcliffe became the club’s largest minority shareholder in February 2024, sweeping cost-cutting measures have been implemented. Roughly 450 roles have been removed, reducing staff numbers to around 800. Ratcliffe has also discontinued Sir Alex Ferguson’s ambassadorial position — saving approximately £2m annually — and scrapped free lunches for club employees.

“These robust financial results reflect the resilience of Manchester United as we make strong progress in our transformation of the club,” Berrada said. “The difficult decisions we have made in the past year have resulted in a sustainably lower cost base and a more streamlined, effective organisation equipped to drive the club towards improved sporting and commercial performance over the long term. That has helped us to invest in our men’s and women’s teams, sitting in sixth and third places in the Premier League and Women’s Super League respectively.”

Cash reserves fell significantly, dropping to £80.5m from £149.6m. Sponsorship income reached £47m — a 9.3% decline — largely due to the end of the training-kit partnership with Tezos. Talks with potential new sponsors are believed to be progressing constructively.