Manchester United chief executive Omar Berrada said the club was reaping the “positive financial effects” of a retrenchment program after its latest accounts showed an increase in profits despite a fall in revenue, but a return to the Champions League appears essential.
United’s men’s team, which has not played any European football matches this season, made an operating profit of £32.6m in the first six months of the financial year (compared to a loss of £3.9m in the same period last year).
Operating profit for the most recent quarter was £19.6m, compared to £3.1m in the same period last year.
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Highlights of the Premier League match between Everton and Manchester United
The figures were announced after minority owner Sir Jim Ratcliffe oversaw a major retrenchment program and reorganization of the club, and United said in announcing the latest figures that it had seen “the positive impact of the operating cost and retrenchment programs undertaken in the previous year”.
United’s total revenue for the second quarter of the financial year was £190.3m, down from £198.7m in the same period last year, with commercial revenue down from £85.1m to £78.5m and matchday revenue down from £52m to £49.5m, but without the financial benefit of this season’s Champions League football.
Manchester United will be tasked with ensuring they qualify for Europe’s elite competition next season in order to continue to benefit financially during Ratcliffe’s tenure. English clubs have earned between £73 million and £86 million each this season by playing in the Champions League.
The club still has debt worth $650m from the Glazer era, while short-term borrowings amount to up to £295.7m.
But United believe they are well placed to make further gains going forward, having climbed to fourth in the Premier League under manager Michael Carrick, while Mark Skinner’s side finished second in the Women’s Super League and reached the quarter-finals of the Women’s Champions League.
“We are now seeing a positive financial impact of our off-field transformation on both cost and profitability,” Berrada said. “We continue to take a football-first approach and invest in both our men’s and women’s first teams.
“On the pitch, our men’s team finished fourth in the Premier League, our women’s team finished second in the Women’s Super League, and we also reached the League Cup final and the quarter-finals of the UEFA Women’s Champions League.
“Today’s results demonstrate the strength of our business as we continue to strive to deliver the best possible football results for our men’s and women’s teams.”
United said it expected to record full-year revenue of between £640m and £660m.
Analysis: Champions League return remains important for Manchester United
Kaveh Solhekol of Sky Sports News:
“Manchester United’s latest reports show how important it is for the club to return to Europe.
“If we want Manchester United to be great again, we need to play in the Champions League again as soon as possible.
“The new expanded competition format means each club in England has earned between £73m and £86m just by playing league games this season.
“United are improving on and off the pitch, but it is too early to start celebrating the latest figures released in New York this morning.
“Not being in Europe would be a financial disaster for most clubs, but United’s finances have managed to hold on even though total debt has increased to £1.29 billion, despite no new stadium for that huge amount of debt.”
“Glazer’s long-term debt remains at $650m, with short-term borrowings of up to £295.7m and transfer fees in excess of £500m.
“As expected, leaving Europe reduced United’s revenue for the six months to the end of December last year from £341.8m to £330.7m.
“Matchday income fell by £2.8m to £75.7m as United played five fewer games at Old Trafford than in the final six months of last year.
“The rise in ticket prices means United are earning more money per match, with United still earning more on matchdays than any other club in England.
“United’s payroll costs in the final three months of last year fell by 9% to £75.1m following the departure of several high-profile players.
“There is no mention of how much compensation Mr. Ruben Amorim was paid, as he was fired on January 5, immediately after the period covered by these reports.”
