Manchester United Finances Q1 2023/24

Brand New Friend

Manchester United have announced financial results for the first quarter of 2023/24, incorporating the first 3 months of the season which cover the period July to September 2023, in other words before Sir Jim Ratcliffe’s £1.3 bln minority acquisition.

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

Overview

Manchester United’s pre-tax loss was more or less unchanged at £33m, even though revenue increased by £13m (9%) from £144m to a first quarter record of £157m and profit on player sales rose £12m (78%) from £17m to £29m.

However, this was largely offset by operating expenses growing £21m (13%) to £185m, while net interest payable also increased by £4m (12%) from £31m to £35m.

It’s worth noting that United made a small £2m operating profit (including player sales), but this was wiped out by the interest charges. The loss after tax was smaller at £26m, thanks to a £7m tax credit.

All three revenue streams increased, especially match day, which rose £6m (29%) from £21m to £27m. There was also good growth in broadcasting, up £4m (12%) from £35m to £39m, and commercial, up £3m (3%) from £87m to £90m.

Investment in the squad led to increases in wages, up £8m (10%) from £82m to £90m, and player amortisation, which rose £6m (17%) from £40m to £46m. Other expenses were £6m (15%) higher at £44m, while depreciation was also up 18% to £4m.

The impact of interest payable on United’s accounts is evident, amounting to more than £30m in the first quarter in each of the last two years, which represents a significant increase over the previous periods.

This is 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 fourth year in a row that Manchester United have reported a pre-tax loss in Q1. There was little change from last season’s £34m loss in the first quarter to the full-year £33m deficit, though it is worth noting that the previous season’s £20m loss in Q1 ultimately became £150m for 2021/22.

Profit from Player Sales

United’s profit from player sales increased from £17m to £29m, mainly thanks to the departures of Dean Henderson to Crystal Palace, Anthony Elanga to Nottingham Forest and Fred to Fenerbahce.