Manchester United Revises Profit Forecast Amid Europa League Performance
In a move reflecting the club’s robust performance in the UEFA Europa League, Manchester United announced on Friday an upward revision of their expected annual core profit. This adjustment sets their forecast for the fiscal year ending in June between £180 million ($244 million) and £190 million, significantly higher than the previously estimated range of £145 million to £160 million.
Increase in Ticket Sales and Financial Performance
This surge in projected profit is largely attributed to a remarkable increase in ticket sales, which soared by over 50% to £44.5 million during the three months leading up to March, a period marked by an admirable run in the Europa League, although the team ultimately succumbed in the final to Tottenham Hotspur.
Despite this positive financial update, the club had its most disappointing season in the Premier League since being relegated in 1974, culminating in their failure to secure a spot in any European competitions for the upcoming season. CEO Omar Berrada acknowledged the challenges faced, stating,
“We had a difficult season in the Premier League, which we all know fell below our standards and we have a clear expectation of improvement next season.”
Total revenue for the club reached £160.5 million, climbing from £136.7 million during the same quarter the previous year, with increases noted across all revenue channels including matchday income, commercial ventures, and broadcasting. Meanwhile, wage expenditures experienced a decrease to £71.2 million, shedding £20 million largely due to the absence of Champions League fixtures and personnel adjustments made during the January transfer window.
Future Challenges and Strategic Adjustments
Despite the financial lift, the club’s exclusion from European competitions jeopardizes future income streams and has sparked frustration among the global fanbase. In response, Jim Ratcliffe, who owns approximately 29% of the club and oversees its football operations, has initiated strategies to recalibrate the club’s fortunes, which include job cuts, increased ticket prices, and the elimination of complimentary meals for staff. These measures are anticipated to yield financial benefits starting in the first quarter of the new fiscal year in July.
Net Loss Improvement
Lastly, Manchester United reported a net loss of £2.7 million for the quarter ending March 31, a sharp improvement compared to a loss of £71.5 million incurred during the same period one year prior.
