Manchester United revenue rose 17% for the three months ending March 31, thanks largely to four more home matches during the quarter, as the team made a run to the Europa League final. The club also reported a rare operating profit.
That’s the good news.
The bad news? United lost the Europa League final to Tottenham Hotspur, which will have a ripple effect on its future results. And the profit was just £707,000 ($962,000 based on current exchange rates). Manchester United lost $3.7 million after taxes and financing costs. This season will be the sixth straight that the 20-time English champions will lose money.
The Europa final loss means United failed to qualify for next season’s European competitions—Europa or Champions League—for just the second time in 35 years. A win in the final would have meant more than $100 million in revenue from the additional prize money and qualification for Champions League.
On top of that revenue shortfall, matchday revenue will take a hit with fewer home games, and there is a £10 million ($13.6 million) reduction from their £90 million-per-year ($122 million) Adidas deal.
Manchester United finished 15th in the Premier League table, just above the relegation line. Last season’s eighth-place finish was its previous worst result since the EPL launched in 1992.
“We had a difficult season in the Premier League, which we all know fell below our standards, and we have a clear expectation of improvement next season,” Omar Berrada, Manchester United CEO, said in announcing the financial results. “We remain focused on infrastructure, with the redevelopment of our Carrington Training Complex continuing and on track, which will be the heart of our club, providing world class facilities for all our teams and our staff.”
In March, the club unveiled plans for a new 100,000-seat stadium to replace Old Trafford. It is also injecting $68 million into its Carrington training facility, with the renovation expected to be completed ahead of the 2025-26 season.
In February, United said it would lay off 150 to 200 employees, on top of the 250 employees who were fired last year. It has been a rough first year-plus at United for billionaire Jim Ratcliffe, who spent $1.3 billion for 25% of the club and heads its sporting operations.
For the quarter, total revenue was $218 million, including commercial revenue of $102 million, up 7.3% over the prior year’s quarter. Broadcasting revenue was $56 million, up 10%, thanks to the additional UEFA competition matches. Matchday had the biggest jump at 50% to $61 million, with the extra home dates and demand for hospitality offerings.
United is just back from its first-ever postseason tour, a six-day, two-game trip to Malaysia and Hong Kong, that is expected to boost fourth-quarter results by £10 million. In a capper to how bad their season has been, United lost the first game 1-0 to the ASEAN All-Stars and was showered with boos. They rebounded to win the second leg of the trip 3-1 over Hong Kong.