Man Utd at risk of POINTS DEDUCTION after PSR losses

Suraj Radia

11 Sept 2024 18:30 BST
3 min read

Sir Jim Ratcliffe, Man Utd, 2023/24 — © IMAGO

Manchester United are confident they will avoid a points deduction despite reporting a net loss of £113.2m (€134m) in their most recent accounts.

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United have also reported losses in the 2022/23 and 2021/22 seasons to take their total losses over the past five years to over £370m (€437m).

According to Premier League profit and sustainability rules, clubs cannot lose more than £105m (€124m) over a three-year period, with Everton and Nottingham Forest having received deductions for breaching those amounts.

United’s current three-year loss is at £254.7m – similar to Everton’s £257m from June 2023 which saw the Toffees initially handed a ten-point deduction.

However, United are not expected to breach rules because not all spending goes against the calculations, while clubs can also claim allowances known as ‘add backs’, to provide exemptions against PSR.

United chief executive Omar Berrada said: “The club remains committed to, and in compliance with, both the Premier League's profit and sustainability rules and Uefa's financial fair play regulations.”

© IMAGO - Sir Jim Ratcliffe invested into Man Utd earlier this year.

Man Utd 'relaxed' despite transfer outlay

While United have exceeded the PSR losses limit on the surface, a large amount of their expenditure came in areas such as club infrastructure, youth development, women's football — investments that are considered allowable losses.

United spent €214m on players this summer, in addition to the €202.3m outlay last summer and €243.3m in 2022/23, which are some of the highest amounts of any side in the Premier League.

The club’s wage bill is also amongst the top in the division but there has been significant progress made in shrinking the annual salary commitments, having seen top earners such as Raphael Varane and Anthony Martial leave Old Trafford this summer.

United also posted a record revenue of £661.8m this year and the club have guided that they expect that figure to continue to grow next year.

Having also raised more than €100m through player sales this summer, United are said to be relaxed over finances and believe they have enough mitigating factors in their favour to avoid a deduction, despite their spending on wages and transfers.