Manchester United’s debt is still rising despite the club returning a £13m profit in its first quarter accounts to 30 September.
The club puts a massive change in the operating costs of the club – which posted record losses of £113.2m to 30 June 2024 – down to the “impact of operating cost and headcount reduction programmes”, implemented over the past 18 months, which has seen staff numbers slashed by over a third to around 700.
However, the debt situation is worsening.
To 30 September, the financial statement confirms United had drawn down £268m on its revolving credit facility – up £35.7m on the previous year. In addition, cash and cash equivalents were £80.5m compared to £149.6m 12 months ago.
The overall amount outstanding – including transfer fee payments – is £539.7m, up £19.6m on a year ago, £323.4m of which is due in the next year.
With the rolling debt added, plus the historic debt taken on by the Glazer family to buy the club in 2005, the total reaches an eye-watering £1.29bn.
It is against this backdrop United are attempting to drive down their wage bill and work out how to finance a new stadium that is likely to cost upwards of £2bn.
Loans to Barcelona and Aston Villa respectively for high-earners Marcus Rashford and Jadon Sancho have contributed significantly to an 8.2% cut in wages to £73.6m for the quarter.
United chief executive Omar Berrada welcomed the return to profit: “These robust financial results reflect the resilience of Manchester United as we make strong progress in our transformation of the club.
“The difficult decisions we have made in the past year have resulted in a sustainably lower cost base and a more streamlined, effective organisation equipped to drive the club towards improved sporting and commercial performance over the long-term.
“That has helped us to invest in our men’s and women’s teams.”