Manchester United have announced operating profits of £13.3m – as Ineos’s restructuring of the business begins to make an impact.
Despite commercial, broadcast and matchday revenues falling at Old Trafford, thanks to a lack of European football, staff cuts and cost-reducing measures have seen the club improve on this time last year, when it lost £6.9m.
Reduced player wages and staff costs saw United increase earnings to £26.9m.
Omar Berrada, Chief Executive Officer, said: ‘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, sitting in sixth and third places in the Premier League and Women’s Super League respectively.’
Manchester United have shared operating profits of £13.3million fter Sir Jim Ratcliffe’s cuts
It is a financial boost after the Red Devils had to announce losses of £6.9m a year ago
Last season the club recorded record revenues of £666.5m, but lost £33m. This year they are estimating between £64-m and £650m.
Following an up and down start to the season United, who finished 15th last year, find themselves in sixth place, eight points behind leaders Arsenal.
United’s gross borrowings – which include the historic debt from the leveraged Glazer takeover – hit a record £748m at September 30 as the club took £105m from its revolving credit facility.
While not uncommon, the fact that they needed to lean on such borrowings underlines how tight things remain at Old Trafford, despite Ineos’s restructuring.
Indeed, had it not been for player sales – with the £40m departure of Alejandro Garnacho to Chelsea key – the picture would have been very different.
The accounting period also saw United without a training kit partner, thanks to the end of their deal with Tezos. Talks are ongoing with a replacement, but sponsorship revenue was down by nine per cent as a result. Wages fell eight per cent thanks to lower bonuses and redundancies.