Manchester United's net debt has exceeded $1 billion, the highest since the Glazer family's 2005 takeover, due to summer borrowing for player recruitment. The club's first-quarter accounts show improved operating profit despite revenue dips from missing European football. Chief executive Omar Berrada highlighted progress in the club's transformation.
Manchester United reported its net debt reaching £749 million ($1.002 billion) in the first-quarter accounts released on Thursday, marking the highest level since the Glazer family acquired the club through a leveraged buyout in 2005. This increase stems from £481 million ($644 million) in noncurrent borrowings accumulated over two decades, plus an additional £105 million drawn from the revolving credit facility, bringing total borrowings to £268 million.
The Glazers, who also own the Tampa Bay Buccaneers, have managed this debt on a club that was debt-free prior to their ownership. In February 2024, INEOS Group, led by Sir Jim Ratcliffe, acquired a 27.7% stake for £1.3 billion and launched a cost-reduction program to enhance financial efficiency at Old Trafford.
Despite the debt milestone, the club posted a £13 million operating profit for the season's opening quarter, reversing a £6.9 million loss from the prior year. Revenue fell 2% to £140.3 million, impacted by the men's team's absence from European competitions. Under manager Ruben Amorim, the men's side sits sixth in the Premier League, while Marc Skinner's women's team is third in the Women's Super League and advancing in the Women's Champions League.
Chief executive Omar Berrada stated, “These robust financial results reflect the resilience of Manchester United as we make strong progress in our transformation of the club.” He noted that tough decisions, including redundancies costing £8.6 million in exceptional items, reduced employee benefits by £6.6 million to £73.6 million year-on-year. Sponsorship income dropped 9.3% to £47 million after the Tezos training kit deal expired.
United anticipates full-year revenues between £640 million and £660 million, crediting a streamlined organization for enabling investments in both teams.
