Manchester United miracle – Made public their latest £130.7m losses yet stay within PSR… | OneFootball

Manchester United seemingly achieving the impossible.

Their latest accounts published for the 2023/24 season, showing massive losses, yet still somehow staying within PSR limits.

These latest losses follow even bigger ones across the previous two seasons (2021/22 and 2022/23) which go to make up the latest three year PSR cycle for Manchester United and the other Premier League clubs.

Last month we reported (see below) on what football finance expert Stefan Borson had said. He had the figures to hand of what Manchester United would officially post today and back in August he said he couldn’t explain how Manchester United had avoided breaking PSR. Stefan Borson said that the latest three-season period (2021/22, 2022/23 and 2023/24) would/should have seen them break the rules. However, Borson saying that Manchester United were allowed two special allowances that made the difference.

The Athletic now reporting (all see below) that the latest Manchester United losses show they had a net loss in 2023/24 of £113.2m, though they add that pre-tax, the loss for last season was actually £130.7m and that pre-tax figure is the one that is used as the starting point for working out PSR.

Premier League clubs can lose no more than £105m over a three season period and The Athletic point out that for Manchester United their last three seasons of pre-tax losses is £312.9m!

Whilst there are areas of expenditure that can be then deducted and not count towards PSR, for Manchester United to have been able to deduct £208m or more these past three seasons… well, it is quite incredible.

Maybe Manchester United use the same accountants as Chelsea…

The likes of Newcastle United, Aston Villa, Everton, Forest and Leicester possibly needing to take advantage of the same advice when it comes to dealing with the Premier League and PSR.

‘Manchester United posted a net loss of £113.2million during the 2023-24 season despite earning record revenues, the Old Trafford club’s full-year accounts have revealed.

United incurred a total of £47.8m in exceptional costs related to the strategic review process which led to Ratcliffe’s minority stake. The club has since embarked on a restructuring process, cutting 250 jobs.

As well as the net loss, United’s pre-tax loss stood at £130.7m. A club’s pre-tax profit or loss is the starting point for the Premier League’s profitability and sustainability rules (PSR).

Under PSR, clubs can incur a loss of no more than £105m over a three-year period. United’s total pre-tax loss over last season’s three-year PSR cycle stands at £312.9m.

PSR allows for clubs to add back spending on youth development, women’s football and community work, among other areas, to help them bring under the maximum £105m threshold.

For last season’s cycle, clubs are also able to add back losses related to the Covid-19 pandemic during the 2021-22 season — the first of the three years under review.

United claim they remain committed to and compliant with the Premier League and UEFA’s spending rules.

United’s £113.2m net loss was despite posting record full-year revenues of £661.8m, driven by increases in broadcasting and matchday income.’

The Mag report – 7 August 2024:

‘A football finance expert has said that he can’t explain how Manchester United avoided breaking PSR.

Stefan Borson said that the latest three-season period (2021/22, 2022/23 and 2023/24) would/should have seen them break the rules.

However, Borson saying that Manchester United were allowed two special allowances that made the difference.

The football finance expert stating that these allowances are ‘relatively exceptional’ when it comes to what is allowed.

Whilst clubs such as Everton and Forest have been hit with points deductions and others such as Newcastle United have had to sell promising players to stay within PSR limitations, Manchester United have stayed the right side of PSR due to these bafflingly allowed allowances.

Stefan Borson speaking to Talksport about Manchester United and PSR – 7 August 2024:

“Manchester United is very interesting because we do have quite a lot of information about Manchester United because of their quarterly report in the US and so we know that they’ve told us that the end of year results will have a £660million top line and about £140m EBITDA.

“It also tells us certain things about their costs. Bottom line is when you drag that down on the three-year assessment, Manchester United would have failed PSR for the season just gone, save for two things.

“One, they were given, it appears, an exceptional allowance of £40m for Covid in 2022, which no other club had.

“The most any other club had was about £1m in that year. We dont know how they got it.

“On top of that it seems they’ve been given allowance for around £35m of exceptional costs relating to the share sale to (INEOS CEO Sir Jim) Ratcliffe which to be honest, the Glazers should have paid that themselves anyway given they were the main beneficiary.

“But we know from the numbers that it was £35m and the only way in which they can make the 23/24 PSR numbers and this is not just my view but the view of multiple people who run the numbers, is by having these allowances.