Manchester United’s overall debt remains above £1bn despite extensive cost-cutting under Sir Jim Ratcliffe, with the club confirming it has also spent £63.5m on land for a proposed new stadium.
United reported record revenue of £677.6m for the financial year, along with an operating profit of £22.6m, despite missing out on European football for the first time in a decade. The figures represent a significant improvement on the £113.2m loss recorded in 2023-24.
Yet the club’s financial position remains heavily burdened. Net finance costs rose 228.3% to £69.6m, with United attributing much of the increase to foreign exchange losses. Football finance expert Kieran Maguire has calculated that finance costs linked to the leveraged Glazer family takeover in 2005 have now exceeded £1bn.
United also revealed that £63.5m from an additional $125m borrowed during a summer refinancing was used to purchase land for the proposed new stadium, which could cost more than £2bn. The club has not detailed how the remainder of the borrowing was spent.
Overall debt has fallen from £1.3bn at the end of December but remains above £1bn. It includes £577.6m of historic debt and £111.4m outstanding on the revolving credit facility, while transfer fees account for a substantial proportion of the £473m listed under trade and other payables.
The figures arrive amid continued supporter anger over investment in the first-team squad. United spent £148m on Carlos Baleba, Andrey Santos and Youri Tielemans during the summer, considerably less than Manchester City’s £458m expenditure.
Fans have questioned the failure to recruit another left-back despite Luke Shaw’s injury problems and the lack of additional attacking cover for Benjamin Sesko.
Chief executive Omar Berrada said the results demonstrated the “underlying strength” of the business and insisted the club remained on the right financial trajectory.
United’s latest accounts also show salary costs falling by £11.3m to £302m following two rounds of redundancies that resulted in 450 job losses.
The club’s improved profitability therefore sits alongside a stark reality: United have reduced their losses, but the financial burden remains substantial.
