Manchester United delivered an alarming message about their finances on Thursday.
In response to a letter from a fan group about ticket price increases at Old Trafford, United responded by saying: “We are currently making a significant loss every year – for the last three years for the past three years.
“This is not sustainable and if we don't act now, we are at risk of significantly impacting our ability to compete on the pitch in future years in line with PSR / FFP.”
Since Mr Jim Ratcliffe and Ineos arrived at the club as investors, there have been a number of stories of backs being cut and savings scrapped. There have been 250 turnovers for club staff, funding for club legends cut or reduced and restructuring behind the scenes.
Gone are the short-term pain with the ambition of long-term gain – United reckoning the restructuring could bring in £40m in the future. The situation has also been a topic of this January transfer window, with domestic players such as Alejandro Garnacho linked with a possible sale.
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Sky Sports News' Senior Reporter Kaveh Sollekol talks about Chelsea's interest in Manchester United youngster Alejandro Garnacho, saying it makes “a lot of sense” for the Blues and a move is possible in the January transfer window.
But the urgency of the need to scale back from the club has been highlighted, especially with Ruben Amorim's side languishing in the bottom half of the Premier League and looking set to miss out on qualification for lucrative football in the lucoda again.
“It's a serious situation, in his own words,” he says Sky Sports News Chief reporter Kaveh Sollekol.
“United reported a net loss of £113m and have lost more than £300m in the past three years. New co-owner Sir Jim Ratcliffe is cutting staff, cutting prices and raising ticket prices.
“Every season United spend out of the Champions League it hits them hard in the pocket. Judging by their league position, things will get worse before they get better.”
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Sky Sports News' senior reporter Kaveh Sollekol talks about how clubs are improving revenue by increasing ticket prices and freeing up concessions, and explains Manchester United's response in this regard.
Interestingly, that belt-tightening statement that unites the aforementioned quarters in the Deloitte Football League of Footballers 2025, with their £651.3m revenue, £651.3m revenue is surpassed only by Real Madrid, Manchester City and Paris Saint-Germain.
But poor sporting performance took its toll. As well as the absence of the Champions League in recent seasons there has been heavy transfer spending, with over £600m spent on players for Erik Ten Haag. United also had to pay a fee for the Dutchman after extending his contract in the summer and then sacking him 12 games into the campaign.
With Amor seemingly needing to refresh the squad and for the club to bring in players to suit their different system and style of play, United may be spending their time out of trouble once again. Which brings us back to increased fares and controversial cuts.
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Kris Boyd was critical of the United man after their late win over Rangers in the Europa League, saying they need to be “much better” and still have a long way to go to compete at the top level.
US carrier groups have branded the ticket pricing scheme of the past few years “largely unparalleled” in the grand scheme of the club's massive revenue.
“The co-owners probably see the price going up as a marginal gain,” Sollekol says.
“United have been hit with huge debts and they need to comply with Premier League and UEFA financial regulations.
“Broadly speaking, the more you earn, the more you can spend – especially under the Premier League's new cost control rules coming in next season.
“United need to cut costs and maximize revenue. Ticket prices are rising, mass surpluses and cost-cutting are controversial when fans can point to the players making money on the pitch.
“Many clubs have owners who have put significant resources into their clubs. Being owned by the Glazer family has cost more than £1 million in the long run. United's long-term debt – the money they used 20 years ago to buy the club – is still £650 dollars m (£526m).
Can a man utd break PSR / FFP rules?
On it, United's claim that they have lost £300m over the past three years would put them in breach of PSR rules, which only allow £105m of losses over three seasons.
However, there are fees within those rules, and clubs can stretch transfer fees paid over multiple accounting periods and write off costs deemed “in the general interest of football”, such as infrastructure, women's teams and academies.
Earlier this month we reported that non-premier league clubs were charged with PSR breaches for the three-year period between 2021-2024.
Importantly, the PSR is set to be replaced by next season's squad cost ruleswhich will limit club transfers to a percentage of their income.
So, for now, United are within limits. But as the club itself has warned, decisive steps are needed now to avoid punishment in the future.