Manchester United plc said its loss widened to £113 million in the year to June 30, 2024, from £28.7 million the previous year, partly because of higher spending on players and wages.
Revenues increased 2.1% to £661 million — but operating expenses rose 12.8% to £768.5 million.
“Employee benefit expenses for the year were £364.7 million, an increase of £33.3 million, or 10.0%, over the prior year, primarily as a result of the men’s first team participating in the UEFA Champions League in the current year compared to the UEFA Europa League in the prior year,” said the company.
Manchester United said exceptional items for the year were a cost of £47.8 million. “This primarily comprises of costs incurred in relation to the sale of 27.7% of the Group’s voting rights to Trawlers Limited, an entity wholly owned by Sir Jim Ratcliffe, including transactions fees payable on completion and compensation for loss of office,” said the company.
“The charge also includes additional contributions we expect to pay towards the Football League pension scheme deficit based on the latest actuarial valuation. Exceptional items in the prior year were £nil.”
Commercial revenue for the year was £302.9 million, the same as the prior year.
Broadcasting revenue for the year was £221.8 million, an increase of £12.7 million or 6.1%, over the prior year, primarily due to the men’s first team participating in the UEFA Champions League compared to the UEFA Europa League in the prior year.
“This is partially offset by the men’s first team being eliminated in the group stage of the UEFA Champions League and finishing 8th in the Premier League in the current year, compared to reaching the Quarter-finals of the UEFA Europa League and finishing 3rd in the Premier League in the prior year,” said the firm.
Matchday revenue for the year was £137.1 million, an increase of £0.7 million, or 0.5%, over the prior year.
On its balance sheet, the company said: “Our USD non-current borrowings as of 30 June 2024 were $650 million, which was unchanged from 30 June 2023.
“As a result of the year-on-year change in the USD/GBP exchange rate from 1.2716 at 30 June 2023 to 1.2643 at 30 June 2024, our non-current borrowings when converted to GBP were £511.0 million, compared to £507.3 million at the prior year end.
“In addition to non-current borrowings, the Group maintains a revolving credit facility which varies based on seasonal flow of funds. Current borrowings including accrued interest, at 30 June 2024 were £35.6 million compared to £106.0 million at 30 June 2023.
“As of 30 June 2024, cash and cash equivalents were £73.5 million compared to £76.0 million at the prior year end.”
For full year fiscal 2025, the company has introduces revenue guidance of £650 million to £670 million and adjusted EBITDA guidance of £145 million to £160 million “which reflects a partial year impact of recent restructuring initiatives.”
Manchester United CEO Omar Berrada said: “It has been a busy off-season for the club with successful training camps for both our men’s and women’s teams. We have strengthened our men’s first team with five exciting players and put a new football leadership structure in place to provide greater support to our manager, Erik ten Hag.
“Dan Ashworth was appointed Sporting Director and Jason Wilcox joined us as Technical Director, two extremely experienced and highly respected professionals who will add great depth to our team.
“We have added six players to our women’s team and are investing to ensure all of our teams have access to world-class training facilities at a fully renovated Carrington. We are also delighted to have extended our Principal Partnership with Snapdragon, after an excellent start, for a further two years in addition to the initial three-year term.
“As I embark on my new role as Chief Executive Officer of this historic club, we are all extremely focused on working collectively to create a bright future with football success at the heart of it.
“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.
“Today, we announce new guidance for fiscal 2025 which reflects a partial year impact of the transformative cost-savings and organizational changes that we have been busy implementing over the summer.
“Ultimately, the strength of Manchester United is driven by the passion and loyalty of our supporters. Our clear objective is to return the club to the top of European football. Everyone at the club is aligned on a clear strategy to deliver sustained success both on and off the pitch, for the ultimate benefit of our fans, shareholders, and hugely diverse range of stakeholders.”