Manchester Utd pledges to improve on and off the pitch after fifth year of losses

8:25 am Wednesday, September 11th, 2024

By Yadarisa Shabong and Shashwat Awasthi

(Reuters) -Manchester United’s new chief said on Wednesday the club was working towards improving performance on and off the pitch after posting a fifth consecutive year of net losses following a poor 2023-24 season.

United have embarked on a slew of changes since British billionaire Jim Ratcliffe bought a 25% stake in the club and under his stewardship had a positive summer in the transfer market. The club made quick and decisive moves to secure new players, many of whom are under 25 years of age, seeking success with them in the short term and the future.

“We are working towards greater financial sustainability and making changes to our operations to make them more efficient, to ensure we are directing our resources to enhancing on-pitch performance,” stated the club’s newly appointed CEO, Omar Berrada.

United’s net loss widened to 113.2 million pounds ($148.14 million) in the year ended June 30, from 28.7 million pounds a year earlier. This was only the second time since the New York listing that United’s annual net loss was more than 100 million pounds.

Shares were 5% lower in U.S. premarket trading.

The club said it was compliant with the Premier League’s Profit and Sustainability Rules and UEFA’s Financial Fair Play Regulations.

Berrada took the reins in July after moving from Manchester City’s parent company, City Football Group.

“Our clear objective is to return the club to the top of European football.”

United finished a disappointing eighth in the Premier League last season, their lowest position since the league’s inception. This season hasn’t started any better, with two losses from the first three games.

Earlier this month, Berrada said manager Erik ten Hag had the full backing of the club.

For the fiscal year 2025, the club expects an adjusted core profit between 145 and 160 million pounds and revenues to range from 650 to 670 million pounds. It reported adjusted core profit of 147.7 million pounds on record revenues of 661.8 million pounds in the fiscal year 2024.

The forecast reflects the impact of recent restructuring initiatives that included plans for 250 job cuts.    

($1 = 0.7641 pounds)

(Reporting by Yadarisa Shabong and Shashwat Awasthi in Bengaluru; Editing by Maju Samuel, Alexandra Hudson)