MANCHESTER, England — Manchester United has informed its supporters that the club continues to experience significant financial losses, which poses a risk of breaching Premier League regulations amid growing dissatisfaction over increased ticket prices.
The storied club, which boasts a record 20 English league titles, is co-owned by the American Glazer family alongside British billionaire Jim Ratcliffe. Manchester United announced a staggering financial loss exceeding £300 million ($371 million) over the last three years.
In a letter addressed to the fan group The 1958, Manchester United emphasized the unsustainable nature of its financial situation, warning that without immediate action, the club might not meet future financial sustainability requirements, potentially hampering its competitive capabilities on the field.
Fans have expressed outrage following the decision to raise the price of the team’s lowest-priced tickets to £66 ($81) during the season, an increase from the previous price of £40 ($49). In their communication, United acknowledged the financial strain on the supporters and remarked that they aim to return to a positive cash flow as quickly as possible, even if it means making challenging decisions along the way.
While the club does not expect its fans to cover the entire deficit, it intends to reevaluate its ticket pricing strategy to ensure prices align with the value provided.
According to the Premier League’s profit and sustainability regulations, clubs are permitted to incur a maximum loss of £105 million ($132.5 million) over a three-year span before facing potential penalties, including points deductions. Everton and Nottingham Forest faced point deductions last season for failing to adhere to these guidelines.
Additionally, non-compliance with UEFA’s financial fair play regulations could also lead to sanctions against the club.
In the previous financial year, Manchester United recorded losses of £113.2 million ($140 million) for the period ending June 30. Nevertheless, some spending areas are excluded from the Premier League’s sustainability calculations, meaning the club’s financial health remains a point of contention.
Ratcliffe, one of the wealthiest individuals in Britain, executed a partial buyout of the club last year and has since led significant restructuring efforts, which included a workforce reduction of around 250 positions.
United acknowledged the difficulties of these changes but believes they are crucial for achieving long-term financial stability, which is essential for regaining its status in both English and European football.
The club also recently parted ways with manager Erik ten Hag, only months after extending his contract through the following season, and announced the departure of sporting director Dan Ashworth by mutual consent less than six months into his tenure.
United’s financial struggles coincide with the urgent need for improvement on the field. Last week, head coach Ruben Amorim referred to the current situation as possibly “the worst in the history of Manchester United” following a defeat to Brighton that left the team in 13th place, perilously close to the relegation zone, far from the Champions League qualification.
The necessity for funds to strengthen the squad raises concerns over the potential exit of key players, including Marcus Rashford and Alejandro Garnacho, during the upcoming midseason transfer window.
