Manchester United, one of the world's most renowned football clubs, has recently posted a profit despite an escalating debt that is nearing £1.3bn. The club's chief executive, Omar Berrada, attributes this improved financial performance to the club's "off-pitch transformation". However, the rising debt and other financial challenges paint a complex picture.
In stark contrast to a loss of £3.9m for the same period 12 months ago, Manchester United reported an operating profit of £32.6m for the six months ending on 31 December 2025. This significant turnaround in profitability is noteworthy but overshadowed by the club’s mounting debt.
The club drew down an additional £25m on their rolling credit facility which now stands at £295.7m. Coupled with legacy debts from Glazer family takeover and additional 'liabilities' listed over £500m - primarily outstanding transfer fee payments - Manchester United owed a staggering total of approximately £1.29bn at year-end.
Cost management measures
Despite these financial challenges, there were some positive developments as well; net finance costs were significantly reduced from previous year’s figure of £37.6m to just under half at £13.9m.
Total revenues for this period amounted to around £190.3 million even though commercial revenue saw an 8% drop compared to last year falling down to about£78 million pounds . On another positive note wages also fell by 9% amounting up-to roughly around£75 million pounds .
Since acquiring his stake in Manchester United two years ago Sir Jim Ratcliffe has initiated major cost-cutting measures including two rounds of redundancies that resulted in cutting down approximately 450 jobs . In addition many staff perks such as paid-for staff canteen have been removed . United sources argue that these cost-cutting measures have allowed for more investment on the data side of the club.
Future financial outlook
Despite these financial challenges, Manchester United remains optimistic about its future. The club is yet to announce how it plans to finance its new ground, which is expected to cost over £2bn. However, it's clear that returning to the Champions League after a two-year absence is a priority for the club.
Omar Berrada, Manchester United CEO, said:
"We are now seeing the positive financial impact of our off-pitch transformation materialise both in our costs and profitability,"
"We continue to take a football-first approach and today's results demonstrate the underlying strength of our business as we continue to push for the best football results possible for our men's and women's teams."
In August 2025, respected football finance blogger Swiss Ramble placed Everton and Tottenham above Manchester United in his debt league. However, both clubs have borrowed heavily for new stadiums.
It's worth noting that there was no mention in the financial statement about any costs associated with sacking head coach Ruben Amorim as this event occurred after the reporting period. While Manchester United has shown some positive signs of financial recovery through cost-cutting measures and reduced net finance costs, significant challenges remain due to rising debts and other liabilities. How they navigate these challenges while investing in their future will be crucial for their long-term success.
