Manchester United Sees Boost in First-Quarter Profits but Debt Soars to Record High
The English football club has reported a notable improvement in its first-quarter profits, rising to £13 million compared to an equivalent loss of £7 million in the same period last year. This significant turnaround is attributed to "the difficult decisions made in the past year" by Sir Jim Ratcliffe, Manchester United's largest minority owner.
However, the club's financial woes are far from over as its total debt has skyrocketed to a record high of £1.29 billion. Revenue declined by 3% to £140.3 million, while revolving credit increased by £35.7 million to £268 million. The noncurrent borrowings remained at £650 million.
Ratcliffe's budgetary adjustments since taking over as the club's largest minority owner have been severe, including approximately 450 redundancies that will leave the headcount around 800. He has also terminated Sir Alex Ferguson's ambassadorial role, estimated to save around £2 million a year, and cut free lunches for United employees.
Chief Executive Omar Berrada attributed the improved financial results to "the resilience of Manchester United" and its transformation into a more streamlined organization with a sustainably lower cost base. The club is now better equipped to drive long-term improvements in sporting and commercial performance.
Despite the encouraging first-quarter results, Manchester United's cash reserves have dwindled to £80.5 million from £149.6 million last year. Sponsorship revenue also fell by 9.3% due to the loss of a training kit partner following the expiration of its deal with Tezos.
Productive discussions are ongoing with prospective partners regarding a new training kit sponsorship, providing a glimmer of hope for the club's financial future.
The English football club has reported a notable improvement in its first-quarter profits, rising to £13 million compared to an equivalent loss of £7 million in the same period last year. This significant turnaround is attributed to "the difficult decisions made in the past year" by Sir Jim Ratcliffe, Manchester United's largest minority owner.
However, the club's financial woes are far from over as its total debt has skyrocketed to a record high of £1.29 billion. Revenue declined by 3% to £140.3 million, while revolving credit increased by £35.7 million to £268 million. The noncurrent borrowings remained at £650 million.
Ratcliffe's budgetary adjustments since taking over as the club's largest minority owner have been severe, including approximately 450 redundancies that will leave the headcount around 800. He has also terminated Sir Alex Ferguson's ambassadorial role, estimated to save around £2 million a year, and cut free lunches for United employees.
Chief Executive Omar Berrada attributed the improved financial results to "the resilience of Manchester United" and its transformation into a more streamlined organization with a sustainably lower cost base. The club is now better equipped to drive long-term improvements in sporting and commercial performance.
Despite the encouraging first-quarter results, Manchester United's cash reserves have dwindled to £80.5 million from £149.6 million last year. Sponsorship revenue also fell by 9.3% due to the loss of a training kit partner following the expiration of its deal with Tezos.
Productive discussions are ongoing with prospective partners regarding a new training kit sponsorship, providing a glimmer of hope for the club's financial future.
. It feels like Sir Jim Ratcliffe is taking some drastic measures, but you can't deny his commitment to turning this club around. Still, it's a bit concerning that they're cutting free lunches and terminating ambassadorial roles... I hope those discussions with prospective partners about that new training kit sponsorship work out soon!
. i mean, 450 redundancies is pretty harsh tho, hope the employees can make ends meet on their reduced salaries. and yeah, no more free lunches for the staff... like, who doesn't love a good free lunch anymore? 
anyway, glad they're trying to turn things around, fingers crossed the new sponsorship deal comes through 
But seriously, I'm worried about their debt 
£1.29 billion is insane 
They need to get their finances in check ASAP 
All those redundancies are no joke 
450 people losing jobs is a big deal 
Guess it's all part of the transformation process 
But I still want to see some sponsorship deals come through 
. They're trying to cut costs left and right, but the debt just keeps piling up 
. And what really gets me is that they're still throwing around a lot of money on free lunches for employees 
- it's like they're trying to keep the status quo at all costs. Meanwhile, their cash reserves are dwindling and sponsorship revenue is taking a hit 
. Can't have a football club living on borrowed time forever, right? 
. But I'm still keeping my fingers crossed that they can turn this around without sacrificing too much of their identity 
️. It's a delicate balance between being smart financially and not selling out to the highest bidder 
. 1.29 billion is like, whoa 
. But on the bright side 
, they're trying to streamline things and make it more cost-effective 
I'm loving the fact that Manchester United is finally getting their finances in check! 450 redundancies can't be easy on everyone, but it's clear they're making some tough decisions to get back on track 
That's crazy! I'm keeping my fingers crossed that they can snag a new sponsorship deal soon - £80.5 million isn't exactly overflowing with cash 
. Fingers crossed for United... we might see some magic happen next season 
! 
. £1.29 billion in debt is crazy! Like, how did it get that high? Did they just keep throwing money at problems without solving them? And yeah, cutting free lunches and terminating Sir Alex's role will definitely save some cash 
.
but at least ceo omar berrada is trying to cut costs and make the club more streamlined 
those were some wild times. now they're trying to trim costs left and right, but it's hard not to feel for the fans who are loyal to a team that's going through so much financial turmoil 
. 450 redundancies? That's gotta hurt. And now their cash reserves are down to £80.5 million? How do you recover from that? 
hopefully they can find new sponsorship deals soon cuz £80.5 million cash reserves is super low 
. Sure, they're seeing a boost in profits from £13 million to £140.3 million, but that's still pretty modest considering their massive debt of £1.29 billion 
. Not to mention, revenue is down by 3% and sponsorship is taking a hit too 
. It seems like they're cutting costs left and right, but are those cuts sustainable in the long run? Only time will tell 
!
