Manchester United’s total debt remains above £1bn despite Sir Jim Ratcliffe’s cost-cutting drive, while the club has confirmed it has spent £63.5m acquiring land for its proposed new stadium.
The financial update comes amid growing frustration among supporters, protests and a difficult start to the season that has left United 12th in the Premier League and already eliminated from the EFL Cup.
Despite those challenges, United reported record annual revenue of £677.6m and an operating profit of £22.6m, even though the club did not compete in European competition for the first time in a decade.
That marks a significant turnaround from the £113.2m loss recorded in 2023-24.
United also revealed savings on the projected £16.5m compensation package for former manager Ruben Amorim, who accepted a position at AC Milan, with £8.5m of the expected cost saved.
However, several other expenses rose substantially during the year. Net finance costs increased by 228.3% to £69.6m, with United attributing much of the rise to foreign exchange losses.
Football finance expert Kieran Maguire has calculated that finance costs alone have now surpassed £1bn since the Glazer family’s leveraged takeover in 2005.
The club also confirmed that £63.5m of the additional $125m (£94.14m) added to its historic debt during a summer refinancing exercise was used to purchase land for the proposed new stadium.
United has not disclosed how the remaining funds were allocated.
The new stadium, which is expected to be built around 350 yards from Old Trafford, could cost more than £2bn.
As a result, United’s overall debt remains above £1bn, although that represents a reduction from the £1.3bn recorded at the end of December.
The figure includes £577.6m in historic debt, £111.4m outstanding on the club’s revolving credit facility and outstanding transfer fees.
Club sources indicate that around 75% of the £473m listed under ‘trade and other payables’ relates to outstanding transfer fees.
The financial figures come against a backdrop of continued criticism from supporters over the club’s transfer spending during the summer.
United invested £148m on three new signings – Carlos Baleba, Andrey Santos and Youri Tielemans – a figure that was less than a third of Manchester City’s £458m spending on their squad and below the amount spent by newly promoted Ipswich.
Supporters have particularly questioned the decision not to sign another left-back to provide competition for Luke Shaw, who has already missed three matches through injury, while there was also no additional attacking reinforcement for Benjamin Sesko after the striker missed pre-season with a shin problem that has since resurfaced.
United maintain that additional funds were allocated towards the proposed stadium project. However, the borrowing remains recorded within the club’s accounts.
“We are pleased to have secured record revenues,” said chief executive Omar Berrada.
“This demonstrates the underlying strength of our business, and shows the direct impact of the work we have been doing over the past two years.
“While these results confirm that we are on the right trajectory, we will continue to take a disciplined approach to ensure our finances remain sustainable.
“With that financial sustainability in mind, we have strengthened both our men’s and women’s teams during the summer window and our men’s team has seen the return of Champions League football to Old Trafford.”
United have also faced criticism over investment in their Women’s Super League squad, which currently sits second bottom of the table with one point from three matches.
Ratcliffe has previously said significant action was necessary to reduce the club’s losses.
Two rounds of redundancies resulted in 450 employees losing their jobs, while United confirmed that its latest salary costs had fallen by £11.3m to £302m.
“This is primarily due to changes in the make-up of the men’s first team squad, combined with savings associated with headcount reduction programs implemented over the previous two fiscal years,” said the club.