New Delhi: Manchester United has admitted that it won’t be able to sustain the financial losses it currently facing and will be at risk of breaching Premier League regulations. This comes after United faced backlash from its fans for rising ticket prices. The Old Trafford side has failed to make a profit since the 2018-19 season making a £300 million loss over the last five years.
United is co-owned by British businessman Jim Ratcliffe and the America’s Glazer family. The 20-time English Champions have said that they are in “danger of failing to comply with PSR/FFP requirements” in the coming years which would eventually affect their ability to remain a competitor on the pitch. The fans had reacted to the lowest-priced tickets going from £40 to £66.
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United emphasized the need to get back to a “cash positive” place at the earliest, having failed to generate revenue from their everyday operations over the last two seasons. For this, they noted that there would be some tough calls to make to achieve this goal. Though their way back wasn’t just through fans making up for the “shortfall” but ticket pricing strategy had to be the correct amount.
The Premier League’s Profit and financial sustainability (PSR) rules allow for a club to lose a maximum of £105 million over a period of three years or else would be facing charges which include points deduction. Both Everton and Nottingham Forest lost points last season for breaching these rules. There are sanctions for failing to adhere to UEFA’s FFP or Financial Fair Play (FFP) rules.
Last year United reported a loss of £113.2 million for the June 30 ending annual report where certain areas are out of the league’s PSR count. United though expected that complying with the Premier League’s 2023-24 PSR rule would be close having suffered pre-tax losses of nearly £313 million over a three-year cycle, though they managed not to be charged.
How Manchester United are restructuring?
Ratcliffe, CEO of INEOS last year bought a minority stake in the team and has since undertaken a major restructuring of the club. There have been numerous cost-saving initiatives which have seen staff reduction from 250 roles. In fact, United in October also fired Erik ten Hag as manager of the side in late October just months after he was given a contract extension. This was followed by their Sporting Director Dan Ashworth leaving the club with mutual agreement in December.
United have said that these weren’t “easy” but it was the need of the hour for the club to regain its financial sustainability and help them reach back to the top of both English and European football. The club also noted that they will soon inform fans about the pricing strategy for the 2025-26 season. The revenue issue comes at a time when United have struggled on the field as well.
Their new coach Ruben Amorim has said that the side’s performance could lead to relegation and last week even said the team was the “worst” in the club’s entire existence after losing to Brighton left them in the 13th place. To fund the addition of players to Amorim’s squad could see the club’s leading players like Marcus Rashford and Alejandro Garnacho leave during the January transfer window.
Manchester United have come forward and admitted their need to become ‘cash positive’ at the shortest time frame possible after fans protested the hike in prices of tickets. Football Sports News: Latest Cricket News, Cricket Live Score, Sports Breaking News from Sports Today
