Manchester United’s overall debt remains above £1bn despite the club announcing record revenues and continuing a major cost-cutting programme under Sir Jim Ratcliffe.
United confirmed revenues of £677.6m and an operating profit of £22.6m for the year, a significant improvement from the £113.2m loss recorded in 2023-24.
However, the club’s financial position remains under pressure, with United also confirming that £63.5m has been spent on land for a proposed new stadium
Stadium plans add to financial burden
United revealed that an additional $125m (£94.14m) was added to their historic debt during a refinancing exercise over the summer.
Of that amount, £63.5m has been used to purchase land for the proposed stadium, which is expected to cost more than £2bn and will be built around 350 yards from Old Trafford.
The club has not explained how the remaining funds have been used.
United’s overall debt has fallen from £1.3bn at the end of December but remains above £1bn. It includes £577.6m in historic debt, £111.4m outstanding on the revolving credit facility and outstanding transfer fees.
Club sources say around 75% of the £473m listed as “trade and other payables” relates to transfer fees still owed.
Meanwhile, net finance costs rose by 228.3% to £69.6m, with United attributing most of the increase to foreign exchange losses.
Football finance expert Kieran Maguire said the finance costs have now taken the total associated with the club’s leveraged debt since the Glazer family takeover in 2005 beyond £1bn.
Cost-cutting continues amid fan frustration
The figures come against a backdrop of supporter frustration over the club’s transfer spending and investment in the first-team squad.
United spent £148m on Carlos Baleba, Andrey Santos and Youri Tielemans during the summer transfer window, with fans questioning why further additions were not made at left-back and in attack.
United have also faced criticism over investment in the women’s squad, with the Women’s Super League side sitting second bottom after collecting one point from their opening three matches.
Ratcliffe has defended the club’s cost-cutting measures, which have included two rounds of redundancies affecting 450 employees.
United said salary costs fell by £11.3m to £302m, primarily because of changes to the men’s first-team squad and savings from staff reductions implemented over the previous two financial years.
“We are pleased to have secured record revenues,” chief executive Omar Berrada said.
“This demonstrates the underlying strength of our business, and shows the direct impact of the work we have been doing over the past two years.
“While these results confirm that we are on the right trajectory, we will continue to take a disciplined approach to ensure our finances remain sustainable.”