Manchester United return to operating profit as debt approaches £1.3bn

Manchester United have reported a return to operating profit despite total debt nearing £1.3 billion, underlining both the financial pressures and commercial strength of one of the world’s biggest football clubs.

Chief executive Omar Berrada said the club are benefiting from the “positive financial impact of our off-pitch transformation” as the latest financial results show improved profitability.

Although United’s men’s side are not competing in European football this season, the club recorded an operating profit of £32.6 million in the first six months of the fiscal year, compared with a £3.9 million loss in the same period last year. For the most recent quarter, operating profit rose to £19.6 million from £3.1 million a year earlier.

The improved figures follow a wide-ranging restructuring overseen by minority owner Sir Jim Ratcliffe, including redundancies and cost-cutting measures. The club said the results reflect “the positive impact of operating cost and headcount reduction programmes implemented in the prior year”.

However, United also drew down a further £25 million on their revolving credit facility, bringing that debt to £295.7 million. Combined with debt linked to the Glazer family’s leveraged takeover and more than £500 million in other listed liabilities, total borrowings stood at £1.29 billion at the end of last year.

Debt servicing costs fell to £13.9 million in the last quarter, down from £37.6 million for the same period a year earlier.

The financial pressure highlights the importance of returning to elite European competition next season. The men’s team, now managed by Michael Carrick following the dismissal of Ruben Amorim, currently sit fourth in the Premier League.

Meanwhile, the women’s side under Marc Skinner are second in the Women’s Super League and have reached the quarter-finals of the Uefa Women’s Champions League.

“We are now seeing the positive financial impact of our off-pitch transformation materialise both in our costs and profitability,” Berrada said. “We continue to take a football-first approach and invest in both our men’s and women’s first teams.

“On the pitch our men’s team sits fourth in the Premier League and our women’s team are second in the Women’s Super League, as well as reaching the League Cup final and the quarter-final of the Uefa Women’s Champions League.

“Today’s results demonstrate the underlying strength of our business as we continue to push for the best football results possible for our men’s and women’s teams.”

Total revenue for the second quarter fell to £190.3 million from £198.7 million in the same period last year. Commercial income declined from £85.1 million to £78.5 million, while matchday revenue slipped from £52 million to £49.5 million.

Despite the dip, United said they remain on course to generate between £640 million and £660 million in total revenue for the full fiscal year.

Elsewhere in the Premier League, Arsenal reported a £1.4 million loss for the 2024/25 financial year, despite posting record revenue of £691 million.

“These financial results show a positive trajectory as we continue to pursue major trophies, following our second successive season back in the men’s Uefa Champions League in 2024/25,” said Arsenal chief executive Richard Garlick.

“The investment in our teams, supported by revenue growth, resulted in strong campaigns for both our men’s and women’s teams last season.

“Our industry continues to face challenges in terms of the level of investment it takes to compete at the highest level in the face of rising costs in a regulated environment. This remains an important consideration as we look ahead.”