Manchester United have now officially released their financial report for the second quarter of the 2025 fiscal year, with the quarter ending 31st December 2024.
To head up the report, as covered by Business Wire, United’s Chief Executive Officer Omar Berrada issued a statement outlining the progress made throughout the quarter.
During his commentary of the quarter, Berrada highlighted the men’s team progressing to the knock-out round of the Europa League and the Fifth Round of the FA Cup.
He also highlighted the Women’s team are in second place in the Women’s Super League and they’ve reached the Quarter-Finals of the FA Cup.
Discussing the club’s infrastructure he reported the redevelopment of the Carrington Training Complex as “on track”, with the work from the Old Trafford Regeneration Task Force demonstrating “significant economic potential” in revitalising the area surrounding Old Trafford as part of the regeneration of United’s home ground.
Whilst these show great progress on the pitch and with developing infrastructure, it’s noticeable that the Manchester United men’s team being in 15th place in the Premier League was left out of the management commentary.
However, looking at the financials, the negative findings can’t be overlooked, with all comparisons made being linked with last year’s second quarter returns.
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Analysis of Manchester United finances for second quarter 2025
Revenue Analysis
This year’s second quarter saw commercial revenue at £85.1 million, which is up by £13.3 million or 18.5% from the same quarter in the previous financial year.
The key factors which contributed to the increase was a £3.8 million increase in sponsorship due to the new Qualcomm/Snapdragon front of shirt sponsorship agreement, and a £9.5 million increase in retail, merchandising, apparel and product licensing due to the new e-commerce model launched in partnership with SCAYLE.
Unfortunately, however as expected, the broadcasting revenue has dropped by £44.8 million or 42.1% to £61.6 million due to the drop from the UEFA Champions League last season to the UEFA Europa League this season.
Finally for revenue, the matchday takings have risen by £4.4 million or 9.2% to £52 million, primarily linked to a strong demand in matchday hospitality packages. A key note is that United played out the same number of home matches, three, in both of quarters being compared.
Unfortunately for United this shows that the drop from the Champions League to the Europa League has cost the club with revenue having an overall decrease of £27.1 million compared to the previous year.
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Other financial information
With the financial pressures that United are experiencing, Sir Jim Ratcliffe’s cost-cutting measures like redundancies have been well reported. However as such, the operating expenses for the quarter are down by £2.3 million or 1.2% from last year, to £196.4 million.
Another knock-on of the drop from the Champions League to the Europa League has been a reduction of employee benefit expenses by £12.6 million or 13.2% to £82.5 million, primarily as a reduction in salaries.
Other operating expenses have increased by £6.4 million or 16.3% which is due to the costs associated with the new e-commerce model, which has been partially offset by the company’s focus on improving operating efficiency.
Next comes depreciation and amortization of assets for the club, with depreciation fairly consistent, rising from £4.2 million to £4.3 million. However, amortization, or the spreading of the cost of an intangible asset over it’s useful life, has decreased by £1.1 million or 2.2% to £49.4 million. United’s unamortized balance of registrations at the end of the quarter stood at £517.6 million.
Interestingly, the “exceptional items” for the quarter, which specifically relate to the sacking of Erik ten Hag and other members of staff, cost the club £14.5 million.
The club’s profit on disposal of intangible assets has risen from £0.4 million to £0.8 million.
One of the biggest changes in this sections comes with the Net financial costs, rising from £0.3 million last year to £37.6 million. This significant rise comes from an “unfavorable swing in foreign exchange rates resulting in unrealized foreign exchange losses on unhedged USD borrowings”, whilst last year the position was favourable.
One constant was income tax, with it valued at £6.8 million for both years.
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Cash Flow
Unfortunately the club saw a decrease on overall cash and cash equivalents by £54 million compared to a decrease of £18 million in the previous year.
Furthermore, the net cash outflow from operating activities has risen from £46.6 million to £63.2 million, with net capital expenditure on intangible assets increasing from £14.2 million to £49.9 million.
The club’s net capital expenditure on property, plant and equipment has increased by £4.1 million to £6.9 million.
Net cash inflow from financing activities remained fairly consistent, reported as £59.9 million this year compared to £59.7 last year. The details behind this are the £80 million INEOS investment this year, with a £20 million repayment of revolving facilities, in comparison to £60 million drawdown on revolving facilities the prior year.
Balance Sheet
When looking at the club’s USD non-current borrowings, this year United reported $650 million, the same as the previous year. However, due to a change in exchange rates, from 1.2746 last year to 1.254 this year, the difference when converted is £506.5 million last year to £515.7 million this year.
Additionally to the non-current borrowings, a revolving credit facility is maintained, varying on seasonal flow of funds. Last year the borrowings stood at £266.8 million, with a decrease to £215.7 million, whilst cash and cash equivalents rose from £62.8 million last year to £95.5 million.
Key Take-aways
Overall the key takeaways from the fiscal report are that revenues have declined by £27.1 million or 12% primarily due to the drop from the Champions League to the Europa League and the attributed broadcasting revenue.
The club’s operating profit has dropped from £27.5 million last year to £3.1 million, however Manchester United still in compliance with both the Premier League’s Profit and Sustainability Rules and UEFA’s Financial Fair Play Regulations.
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