United’s comprehensive layoffs over £36 million have helped cut losses and brought in record revenues, skeptical of Sir Jim Ratcliffe’s claim that the club is on the verge of a financial collapse.
The restructuring saw returns from about 400 jobs, including firing manager Erik Ten Hag and sports director Dan Ashworth, whose net loss dropped to £33 million in 12 months to 330 years, down from £113.2 million the previous year. The total fleet number dropped from 1,122 to about 700.
The overhaul was conducted after a disastrous season on the court, which left United with a minimum championship in 51 years without Champions League football. Broadcasting revenue fell by nearly £50 million. However, business revenue soared to record-breaking heights thanks to sponsorship of the lucrative Snapdragon shirt and a new e-commerce partnership with Scayle. Match-day income also jumped nearly 17%, while wages fell £51.5 million to £313.2 million after players cut 25% without Champions League bonuses.
Despite the turmoil, Manchester United’s revenue was £666.5 million, the largest in their history. Analysts say this weakened Ratcliffe’s dramatic warning earlier this year that the club could go bankrupt by Christmas 2025.
Despite the ongoing balance sheet transfer spending and another season extension outside the Champions League, Manchester United’s ability to generate cash is achievable. The club’s EBITDA – revenue before interest, taxes, depreciation and amortization – hit £182.8 million and is expected to remain between £180 million and £200 million this season, the highest of any European club since the popularity.
For investors and lenders, EBITDA is a key measure of financial strength. Through this measure, Manchester United’s performance suggests resilience, not destruction. Although Ratcliffe’s cuts are painful, the club’s cash-generating ability is unique in European football even during tough times.
