Manchester United's Financial Struggles Amid European Exit

Manchester United reported a first-quarter net loss amid lower broadcasting revenue and ticket sales due to missing European competitions. The club cut jobs to lower costs and aims to improve fiscal performance. Despite financial pressures, it maintains revenue forecasts and plans for stadium expansion.

Manchester United has reported a net loss for the first quarter, attributed to diminished broadcasting revenue and ticket sales following the club's absence from European competitions this season. The club, based at Old Trafford, declared a net loss of 6.6 million pounds for the quarter ending September 30, reversing a profit of 1.4 million pounds from the previous year. Overall revenue dropped by 2%, alongside an 8.2% reduction in player and staff wages due to strategic job cuts.

In a statement, CEO Omar Berrada emphasized the effectiveness of these fiscal measures, claiming they have created a more streamlined and cost-efficient organization. Despite six years of consecutive financial losses, Berrada expressed optimism about the club's long-term sporting and commercial prospects. The restructuring aims to counteract the 20-time English champions' underperformance on both financial and athletic fronts.

Manchester United has retained its optimistic revenue forecast for fiscal 2026, projecting figures between 640 million and 660 million pounds, with core profits anticipated to be within the range of 180 million to 200 million pounds. Despite recent struggles, minority owner Jim Ratcliffe, who possesses a 29% stake in the club, has increased ticket prices. The organization also splurged around 230 million pounds in the summer transfer window and plans to build a new 100,000-seat stadium costing 2 billion pounds. Yet, the absence from European circuits continues to pressure their broadcasting revenue and attract criticism from fans amid the team's domestic challenges.

(With inputs from agencies.)