Manchester United disclosed on Wednesday that they recorded losses of 113.2 million pounds ($148 million) in their latest accounts for the year ending June 30, despite achieving record revenues of 661.8 million pounds ($866 million). The Premier League team attributed these losses partly to increased expenditure on players. The Profit and Sustainability Rules (PSR) of the league permit clubs to incur a maximum of 105 million pounds ($137 million) in losses over a three-year span or face penalties. Last season, both Everton and Nottingham Forest were sanctioned with points deductions for breaching these regulations.

Although Manchester United experienced financial setbacks, they asserted that they remained in adherence to the financial rules outlined by both the league and UEFA, Europe’s governing body for football. The PSR extends beyond mere monetary losses, allowing flexibility for investments in aspects like infrastructure. The club has undertaken a significant reorganization following British billionaire Jim Ratcliffe’s investment of $1.3 billion for a 27.7% ownership stake.

Recently appointed chief executive Omar Berrada, recruited from Manchester City, has spearheaded cost-cutting measures at the iconic club, including the elimination of approximately 250 staff positions. Berrada emphasized the commitment to achieving greater financial sustainability and operational efficiency to enhance on-field performance. Manchester United’s financial records unveiled losses of 28.7 million pounds ($37.5 million) in 2022-23, 115.5 million pounds ($151 million) in 2021-22, and 92.2 million pounds ($120.5 million) in 2020-21.

The most recent financial report encompassed expenses of 47.8 million pounds ($62.4 million) primarily linked to Ratcliffe’s investment. These strategic financial adjustments signify the club’s dedication to managing its resources effectively amidst challenging economic circumstances.