Manchester United\'s net debt has exceeded $1 billion for the first time since the Glazer family\'s 2005 takeover, driven by summer borrowings for player acquisitions. The club\'s total debt now stands at its highest level in two decades despite INEOS-led cost-cutting initiatives.
United\'s first-quarter accounts published Thursday revealed noncurrent borrowings at £481 million ($644 million). Additional borrowing of £105 million from the club\'s revolving credit facility brought total net debt to £749 million ($1.002 billion), according to the financial statement.
The INEOS Group, led by Sir Jim Ratcliffe, acquired a 27.7% stake in February 2024 for £1.3 billion. The minority owners have since implemented widespread cost reductions at Old Trafford aimed at improving long-term sustainability.
United reported a £13 million operating profit for the campaign\'s first three months. That marks a turnaround from the £6.9 million loss recorded during the same period last season.
\"These robust financial results reflect the resilience of Manchester United as we make strong progress in our transformation of the club,\" chief executive Omar Berrada said.
\"The difficult decisions we have made in the past year have resulted in a sustainably lower cost base and a more streamlined, effective organisation equipped to drive the club towards improved sporting and commercial performance over the long-term.\"
Total revenue dropped 2% to £140.3 million for the quarter. The decline stems from United\'s absence from European competition this season after finishing outside qualifying positions.
The men\'s team currently sits sixth in the Premier League under manager Ruben Amorim. The women\'s team ranks third in the Women\'s Super League and competes in the Women\'s Champions League.
Employee benefit expenses decreased by £6.6 million to £73.6 million. The reduction reflects INEOS-led redundancy programs and lower player wages implemented during the previous fiscal year.
Sponsorship revenue fell 9.3% to £47 million. The drop follows the conclusion of United\'s training kit partnership with Tezos. United projects total revenues between £640 million and £660 million for the fiscal year.
Via Mark Ogden/ESPN