Manchester United are working to become more “financially sustainable”, according to new chief executive Omar Berrada, after posting a loss of more than £110m (US$144m) in their latest financial results.
The club announced record revenues of £661.8m for the year ending June 30 in results published on Thursday. However, net losses widened to £113.2m ($148.2m) after increased investment in the playing squad.
United have posted losses of more than £90m in three of the past four years, and last turned a profit in 2019. But sources insist the club remains “committed” to complying with Premier League profit and sustainability regulations and UEFA's financial fair play rules.
The Premier League allows losses of £105m over a three-year period, but there are provisions for allowable losses including investment in infrastructure and youth development.
“We are all extremely focused on working collectively to create a bright future with football success at the heart of it,” Berrada said.
“We are working to achieve greater financial sustainability and make changes to our operations to make them more efficient, to ensure we are directing our resources to improve performance on the pitch.
“Our clear objective is to return the club to the top of European football.
“Everyone at the club is aligned on a clear strategy to achieve sustained success both on and off the pitch, for the maximum benefit of our fans, shareholders and a hugely diverse range of stakeholders.”
United spent more than £180m signing five new players over the summer, including Matthijs de Ligt, Joshua Zirkzee and Manuel Ugarte.
The investment in the squad has increased the pressure on manager Erik ten Hag to deliver on the pitch, particularly after the humiliating 3-0 home defeat to Liverpool.
However, Berrada has reaffirmed the club's commitment to the Dutchman ahead of a crucial run of games in the Premier League, Carabao Cup and Europa League before the October international break.
“We have strengthened our men's first team with five exciting players and have put in place a new football leadership structure to provide greater support to our coach,” he said.
