Manchester United post record revenue but debt stays over £1bn

Manchester United made more money than ever last season. They still owe more than £1bn.

Figures published on 23 September show record revenues of £677.6m for the year. The club also reported a £22.6m operating profit, which is the money made from day-to-day running before interest and other charges are taken off. A year earlier that figure was a £113.2m loss, according to BBC.

That turnaround came with a human cost. Around 450 staff lost their jobs across two rounds of redundancies. Salary costs fell by £11.3m to £302m.

United also saved money on managers. The club had set aside a projected £16.5m pay-off for Ruben Amorim. It saved £8.5m of that after he took a new job at AC Milan.

On the pitch, the spending continued. United paid £148m in the summer transfer window for Carlos Baleba, Andrey Santos and Youri Tielemans. Off the pitch, they spent £63.5m buying land for a new stadium.

The stadium plan is big. The new ground is expected to cost in excess of £2bn. That is a long-term project, and the debt picture explains why fans watch it so closely.

Total debt has come down from £1.3bn at the end of December. It is still over £1bn. Within that, the club’s historic long-term debt stands at £577.6m. That grew after United added $125m, about £94.14m, in a summer refinancing move.

Borrowing costs are rising fast. Net finance costs for the year were £69.6m, an increase of 228.3%. United also has £111.4m outstanding on its revolving credit facility, a flexible borrowing pot clubs use like an overdraft.

For fans, this means two stories at once. The club is bringing in record cash and cutting its wage bill. It is also paying tens of millions just to service its debts while trying to fund a squad rebuild and a huge new home.