Manchester United are working towards becoming more “financially sustainable,” according to new CEO Omar Berrada, after posting a loss of more than £110 million ($144m) in their latest financial results.
The club announced record full year revenues of £661.8 million for the year ending June 30 in results published on Thursday. However, net losses rose to £113.2m ($148.2m) after increased investment in the playing squad.
United have recorded losses of more than £90m in three of the last four years, and were last profitable in 2019. But sources insist the club remain “committed” to be compliant with the Premier League‘s profit and sustainability regulations and UEFA’s financial fair play rules.
The Premier League allows for 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 towards greater financial sustainability and making changes to our operations to make them more efficient, to ensure we are directing our resources to enhancing on-pitch performance.
“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 deliver sustained success both on and off the pitch, for the ultimate benefit of our fans, shareholders, and hugely diverse range of stakeholders.”
United spent more than £180m on signing five new players during the summer including Matthijs de Ligt, Joshua Zirkzee and Manuel Ugarte.
The outlay on the squad has increased the pressure on manager Erik ten Hag to produce performances on the pitch, particularly after the humbling 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 put a new football leadership structure in place to provide greater support to our manager,” he said.