MANCHESTER — Manchester United's overall debt remains over £1bn despite Sir Jim Ratcliffe's cost-cutting, with the club confirming it has spent £63.5m on land for a new stadium even as it announced record revenues of £677.6m and a £22.6m operating profit. The financial update comes amid fan protests and a disappointing start that has left United 12th in the Premier League and already out of the EFL Cup, despite not playing in Europe for the first time in a decade — a sharp turnaround from a £113.2m loss in 2023-24.
Net finance costs for the year were £69.6m, an increase of 228.3% that the club attributed largely to a foreign exchange loss. According to football finance expert Kieran Maguire, net finance costs alone have now exceeded £1bn since the leveraged Glazer family buyout in 2005. United said the £63.5m land purchase came from an additional $125m (£94.14m) added to historic debt during a summer refinancing, without explaining the use of the remainder, while the stadium itself — to be built 350 yards from Old Trafford — is likely to cost in excess of £2bn. Overall debt has reduced from £1.3bn at the end of December but remains over £1bn, comprising historic debt of £577.6m, £111.4m outstanding on a revolving credit facility, and outstanding transfer fees that club sources say represent approximately 75% of the £473m listed as 'trade and other payables'.
"We are pleased to have secured record revenues," said chief executive Omar Berrada. "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. With that financial sustainability in mind, we have strengthened both our men's and women's teams during the summer window and our men's team has seen the return of Champions League football to Old Trafford."
The figures have intensified supporter anger over what fans view as chronic under-investment in Michael Carrick's first-team squad. United spent £148m on three signings — Carlos Baleba, Andrey Santos and Youri Tielemans — less than a third of the £458m Manchester City invested and lower even than promoted Ipswich. Fans pointed to the lack of an additional left-back to compete with Luke Shaw, who has already missed three matches through injury, and no striking support for Benjamin Sesko, who missed pre-season recovering from a shin complaint that has already resurfaced. The club argues additional funds were earmarked for the stadium, though the loan is lodged within club accounts. United have also faced criticism over the Women's Super League squad, currently second bottom with one point from three games.
Ratcliffe had argued strong action was needed to slash losses, with two rounds of redundancies leading to 450 job losses. Salary costs have fallen by £11.3m to £302m, which the club said was "primarily due to changes in the make-up of the men's first-team squad, combined with savings associated with headcount reduction programs implemented over the previous two fiscal years." United also saved £8.5m of a projected £16.5m pay-off to axed boss Ruben Amorim after he accepted a job at AC Milan.