Manchester United have expressed confidence around complying with the league's profitability and sustainability rules (PSR) for the assessment period ending with the 2023-24 season; PSR allows for losses of up to £105m over a three-season period
Wednesday 10 July 2024 14:09, UK
Manchester United are confident of complying with the Premier League's financial rules for 2023-24 despite posting a £71.4m net loss for the third quarter.
The net loss figure includes £30.3m in exceptional costs related to the sale of 27.7 per cent of voting rights in the club to Sir Jim Ratcliffe, including consultancy fees owed to the American firm Raine.
United sources see those costs as a necessary price to pay in helping to put in place the ownership and management structures they believe will bring greater discipline on recruitment in the future, while maintaining the club's commercial resilience.
Dan Ashworth finally joined United as their new sporting director to oversee player recruitment last week, while Omar Berrada begins work as the club's new chief executive this week.
While the sale to Ratcliffe came at a cost to United, on the flipside he is committed to investing $300m (£234m) in developing club infrastructure, with $200m (£156m) already paid in, including around £50m towards upgrading the club's Carrington training complex.
Club sources expressed confidence around complying with the league's profitability and sustainability rules (PSR) for the assessment period ending with the 2023-24 season.
The PSR allow for losses of up to £105m over a three-season assessment period. They will remain in place next season, with new financial rules set to be adopted for the 2025-26 season.
The club have been working hard to meet PSR requirements and were able to trim squad costs via January loans, including Jadon Sancho going to Borussia Dortmund and Donny van de Beek to Eintracht Frankfurt.
Total operating expenses were up 15 per cent on the equivalent quarter last year to £203.7m, which included £91.2m in employee costs, reflecting investment in the first-team squad.
Amortisation costs - related to the payment of transfer fees over the course of players' contracts - was £46.3m, up by £3.4m on the same quarter last year.
Revenue was down 20 per cent compared to the same period last season, which the club attributed to playing nine fewer home matches.
The accounts confirmed plans, first reported last week, for a redundancy programme which could lead to around 250 jobs being lost across the club.
Donny van de Beek has confirmed he is leaving Manchester United.
Van de Beek is in the process of securing a move to Spanish side Girona after four difficult years at Old Trafford.
The 27-year-old suggested the deal was in its closing stages as he bid United fans farewell in an post on social media.
He wrote: "Today [Wednesday] is a memorable day as my adventure at the club comes to an end. I want to thank you all for your support throughout the years."
Van de Beek was signed from Ajax for £39m in 2020, but never managed to nail down a consistent place in the side.
The midfielder made only 62 appearances in his four seasons at Old Trafford, while going out on loan to Everton and Frankfurt.
