Manchester United swings to £6.6 million loss after missing out on Europe
Key figures at a glance
- Net loss: £6.6 million for Q1 (to 30 September 2025)
- Prior-year result: £1.4 million profit (same quarter 2024)
- Total revenue: £140.3 million, down 2 % year-on-year
- Wage bill: cut by 8.2 % after ~450 redundancies
- Record debt: £1.29 billion (up from £1.23 billion)
- Full-season revenue forecast: £640 m – £660 m; EBITDA £180 m – £200 m
Why the club fell into the red
Manchester United’s first-quarter accounts show the first net loss in a year, a direct consequence of the men’s team failing to qualify for the UEFA Champions League or Europa League in 2024-25. The absence of mid-week European matches hit broadcasting revenue, while match-day takings slipped because Old Trafford hosted two fewer high-profile fixtures.
Overall revenue slid to £140.3 million, a modest 2 % drop, but the mix changed dramatically:
- Broadcasting income fell the sharpest, reflecting UEFA prize-money and TV rights lost.
- Commercial and sponsorship income dipped 1.3 % to £93.3 million after the Tezos training-kit deal lapsed.
- Match-day revenue eased by just over 1 %, cushioned by higher ticket prices introduced under minority owner Sir Jim Ratcliffe.
Cost-cutting eases the pain
New chief executive Omar Berrada credited “difficult decisions” for producing a leaner cost base. Redundancies, removal of staff perks (including free lunches) and scrapping Sir Alex Ferguson’s ambassadorial contract shaved the quarterly wage bill to £73.6 million – the lowest since 2020.
These measures were enough to deliver an operating profit of £13 million, but higher finance costs swung the bottom line back into loss.
Debt climbs amid stadium ambitions
Total debt has ballooned to £1.29 billion, fuelled by an increase in revolving credit facilities to £268 million, as the club explores £2 billion plans for a new 100,000-seat stadium on the Old Trafford site.
While the debt figure alarms supporters, the board insists the extra headroom is essential to finance infrastructure upgrades and remain competitive in the EPL.
Outlook for the rest of 2025-26
The club maintains guidance for full-year revenue of £640–660 million and underlying profit (EBITDA) of £180–200 million, provided the men’s team secures at least a top-six league finish and the women’s side continues its Champions League qualification push.
However, another season outside European competition would almost certainly force further belt-tightening and could delay the stadium project. Sporting performance in the second half of the campaign is therefore critical to both the financial health and strategic ambitions of the 20-time English champions.
Frequently asked questions
- Has Manchester United’s debt ever been higher?
- No – the latest figure of £1.29 billion is the highest since the Glazer takeover in 2005.
- Which revenue stream suffered most without European football?
- Broadcasting revenue, due to the loss of UEFA prize money and TV rights.
- Will ticket prices rise again?
- The board has not ruled it out, but any rise is likely to be modest while match-day demand remains strong.