Man United Reports £6.9m Operating Loss in Q1 2024-25 Due to Champions League Absence and Restructuring Costs
Manchester United has reported an operating loss of £6.9 million for the first quarter of the 2024-25 financial year, largely attributed to their absence from the Champions League and costs related to a redundancy program.
The club finished eighth last season under former manager Erik ten Hag, marking their lowest-ever Premier League position and missing out on European competition.
This absence resulted in a 20.4% drop in broadcasting revenue for the quarter ending September 30, falling from £39.3 million to £31.3 million. Although United won the FA Cup last season, they are competing in this year’s Europa League instead.
Commercial revenue also declined by 5.6%, dropping from £90.4 million to £85.3 million, while matchday revenue decreased by 3.3%, from £27.4 million to £26.5 million.
The club recorded exceptional costs of £8.6 million related to restructuring, including the redundancy scheme implemented in the first quarter of the financial year.
United anticipates that these restructuring efforts will lead to savings of £40 million to £45 million, positively impacting their financial results for 2025 and 2026. In the same quarter last year, the club reported a profit of £1.9 million but ended this period with net losses of £113.2 million.
The club expressed confidence in remaining compliant with the Premier League’s profitability and sustainability rules, which allow for maximum non-allowable losses of £105 million over three seasons.
Notably, United’s wage bill decreased by £10.1 million to £80.2 million for the quarter, attributed to changes in the first-team squad.
Chief Executive Omar Berrada confirmed that cost and headcount reductions are on track, alongside ongoing renovations at the Carrington training ground.
He also mentioned the taskforce evaluating the redevelopment of Old Trafford or the potential construction of a new stadium is continuing its work, chaired by World Athletics President Lord Coe and including former United defender Gary Neville.
Looking ahead, the club predicts total revenue for 2025 to be between £650 million and £670 million.
