Home / Sports / Man Utd's cost cuts yield £13m profit

Man Utd's cost cuts yield £13m profit

Summary

  • Operating profit reached £13m, a turnaround from last year's loss.
  • Staff numbers reduced by over a third to around 700.
  • Wages fell over eight percent due to player loan exits.
Man Utd's cost cuts yield £13m profit

Manchester United's latest financial reports for the quarter ending September reveal a substantial turnaround, with an operating profit of £13 million compared to a near £7 million loss in the same period last year. This positive shift is attributed to a significant reduction in operating costs and headcount, with staff numbers decreasing by over a third to approximately 700 over the past 18 months. The club's chief executive highlighted these "robust financial results" as evidence of progress in the club's transformation.

Despite the improved profitability, Manchester United's finances remain constrained. The absence of European football and the expiration of their training kit partnership continue to impact revenues. Although player wages have decreased by over eight percent in the quarter due to loan departures of high earners, the team's manager is under pressure to secure European qualification for the upcoming season. Sponsorship income also saw a dip due to the ongoing search for a new training kit partner.

The club also utilized its revolving credit facilities, borrowing £105 million between July and September to fund summer transfer activity. While navigating these financial pressures, the club aims for improved sporting and commercial performance, with investments made in both the men's and women's teams, who are currently positioned sixth and third in their respective leagues.

Disclaimer: This story has been auto-aggregated and auto-summarised by a computer program. This story has not been edited or created by the Feedzop team.

Read more news on

Property Code: 5571