Manchester United's absence from the Champions League adds to their financial woes

Manchester United reported total revenue of £143.1 million for the first quarter, reflecting a £14 million decrease due to their absence from the Champions League. Nonetheless, the club achieved a net profit of £1.4 million between July and September, a significant improvement compared to the £25.8 million loss experienced during the same period last year. This positive turnaround had been supported by favourable currency exchange rates.

Champions League absence results in financial loss for the Red Devils 

Last season, the club experienced its worst-ever finish in the Premier League, landing in eighth place under Erik Ten Hag, which directly led to their failure to qualify for Europe’s top club competition.

Additionally, broadcasting revenue took a significant hit, declining by 20.4 per cent to £31.3 million in the quarter ending September 30. However, their victory in the FA Cup last season has secured them a place in the Europa League this season.

Commercial revenue saw a modest decrease of 5.6 per cent, totalling £85.3 million, while the matchday revenue experienced a slight dip of 3.3 per cent, amounting to £26.5 million.

The club reported exceptional costs of £8.6 million, which were primarily related to the ongoing restructuring of the group's operations. This includes investments made in a redundancy scheme that was implemented during the first quarter of the financial year 2025, aimed at enhancing the operational efficiency of the club.

Cost control measures makes little effect 

With the acquisition of a minority stake, British billionaire Jim Ratcliffe's INEOS group has taken control of football operations this year.

They are actively enforcing a series of cost-reduction measures, including a targeted staff reduction of around 250 positions. Chief Executive Omar Berrada has confirmed that these cost and staff reductions are firmly on track, in conjunction with essential renovations at the Carrington training facility.

United ended their financial year in June with a substantial net loss of £113.2 million, marking their fifth consecutive year in the red. The club is confidently projecting total revenue between £650 million and £670 million for 2025.

This month, Ruben Amorim took over as Ten Hag's replacement and managed his first match at Ipswich, where the team settled for a 1-1 draw. Currently, United sits in 12th position in the Premier League, far off the pace of securing a Champions League qualification spot.