Football powerhouse Manchester United reports a significant revenue increase despite suffering substantial losses of approximately $45 million in their worst season in the English Premier League.
Manchester United, one of the most iconic football clubs in the world, has reported a record revenue of £666.5 million for the fiscal year ending June 30, 2025. Despite this significant figure, the club has faced a challenging 19 months under the leadership of Jim Ratcliffe, the founder of petrochemical giant Ineos Group.
Commercial revenue, which accounted for 50% of United's total revenue, saw a surge of 16% due to a strong performance in retail and a 6% increase in sponsorships. However, the club's overall revenue increase was a mere 0.7% over the previous year's record, indicating a slowdown in growth.
Revenue from the Europa League final, which United failed to reach, would have brought in more than $100 million and qualification for the Champions League. The club's dismal performance in the 2025-26 season, with only one win and a 14th place finish in the EPL standings, has undoubtedly contributed to this missed opportunity.
In an effort to boost its financial prospects, Manchester United announced plans for a new 100,000-seat stadium to replace Old Trafford. The club also invested £68 million in its Carrington training facility ahead of the 2025-26 season.
However, the club's financial struggles are not limited to its on-field performance. United has had six straight years of losing money after taxes and interest payments, with a cumulative loss of £406 million, including the years impacted by COVID-19. The club's value dipped 2% from the prior year in Sportico's ranking, and it did not qualify for any European competitions for the 2025-26 season.
In an attempt to cut costs, Manchester United laid off 150 to 200 employees in February, in addition to the 250 employees fired the previous year. The club's financial situation has been further complicated by the downgrading of Ineos Group's credit score by Moody's this week.
Despite the challenges, Manchester United remains one of the world's most valuable soccer teams, ranking second in Sportico's annual list at $6.09 billion. The club's shares on the New York Stock Exchange are flat over the past 12 months and closed Tuesday at $16.41, implying an enterprise value of $3.7 billion.
As Manchester United looks to the future, it faces a difficult task in turning around its fortunes both on and off the pitch. The club's new stadium and training facilities offer a glimmer of hope, but the club's financial struggles and poor performance on the field will undoubtedly continue to be a source of concern for fans and investors alike.
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