Manchester United's overall debt remains over £1bn despite Sir Jim Ratcliffe's extensive cost-cutting measures, with the club also confirming it has spent £63.5m buying land for the team's new stadium.
Amid a backdrop of fan protests and a disappointing start to the season that has left United 12th in the Premier League and already out of the EFL Cup, the club have announced record revenues of £677.6m and a £22.6m operating profit despite not playing in Europe for the first time in a decade.
This represents a huge shift from the £113.2m loss in 2023-24.
However, while United have saved £8.5m of a projected £16.5m pay-off to axed boss Ruben Amorim after he accepted a job at AC Milan, other costs have increased.
Net finance costs for the year were £69.6m, an increase of 228.3%. United put most of this down 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.
In addition, United also confirmed they spent £63.5m of an additional $125m (£94.14m) added to their historic debt during a summer refinancing move on land for their new stadium. The club have not explained what they have done with the remainder. The stadium itself is likely to cost in excess of £2bn.
It means the club's overall debt, while reducing from £1.3bn at the end of December, is still over £1bn, made up of the historic debt, which now stands at £577.6m, the £111.4m outstanding on its revolving credit facility, and outstanding transfer fees, which club sources say represents approximately 75% of the £473m listed and being owed as 'trade and other payables'.
This comes at a time when supporters are furious about what they believe to be chronic under investment in Michael Carrick's first-team squad this summer.
United spent £148m on three new signings - Carlos Baleba, Andrey Santos and Youri Tielemans. It was less than a third of the £458m Manchester City invested in their squad and lower even than promoted Ipswich.
However, fans are angry there was no additional left-back purchased to provide competition for Luke Shaw, who has missed three matches because of injury already, or striking support for Benjamin Sesko, who missed pre-season as he recovered from a shin complaint that has already resurfaced.
While United argue the additional funds were earmarked for their stadium, to be built 350 yards away from where Old Trafford stands, the loan itself is lodged within club accounts.
"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.”
United have also been criticised for a lack of investment in the Women's Super League squad, who currently sit second bottom of the table with one point from three games.
Ratcliffe previously argued the club had to take strong action to slash losses. Two lots of redundancies led to 450 people losing their jobs, while United have confirmed their latest set of salary costs have reduced by £11.3m to £302m.
"This is 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," said the club.
Source: BBC
– Agencies
