Manchester United Finances H1 2023/24

Somebody Else

Manchester United have announced financial results for the first half of 2023/24, incorporating the first six months of the season which cover July to December 2023, in other words before Sir Jim Ratcliffe’s purchase of a minority stake.

Although very few clubs publish interim accounts, these figures will still be of interest to many, not least the new investors from INEOS.

Overview

Manchester United’s pre-tax loss narrowed from £25m to just £6m, as revenue increased by £72m (23%) from £311m to a first half record of £383m and profit on player sales more than doubled from £14m to £30m.

However, this was accompanied by operating expenses rising £52m (16%) to £383m, while net interest payable also increased by £16m (85%) from £19m to £35m.

It’s worth noting that United made a decent £29m operating profit (including player sales), but this was completely wiped out (and more) by the interest charges.

The revenue growth was driven by the return to the Champions League, which drove large increases in both broadcasting, up £52m (55%) from £94m to £146m, and match day, up £24m (47%) from £51m to £75m.

This was partially offset by lower commercial, which fell £4m (2%) from £166m to £162m.

Investment in the squad led to increases in wages, up £25m (16%) from £160m to £185m, and player amortisation, which rose £12m (14%) from £84m to £96m. Other expenses were £3m (4%) higher at £83m, while depreciation was also up 16% to £8m.

The impact of interest payable on United’s accounts is striking, amounting to £35m in the first half, which represents a significant increase over the previous comparative periods.

This is partly due to rising interest rates, but largely because the majority of the club’s debt is denominated in USD and unhedged. Therefore, the weakening in the Pound against the Dollar has led to higher interest charges in the club’s accounts, which are reported in Sterling.

Profit/(Loss)

This is the third season in a row that Manchester United have reported a pre-tax loss in H1. Revenues and costs are not evenly phased during the financial year, but it is perhaps worth noting that the previous season’s £25m loss after the first six months ultimately became a £33m loss for the full season.