Aston Villa’s Premier League rivals Manchester United have announced losses of £113m for the year ending 30 June 2024. United finished in eighth last season, having failed to secure another year in the Champions League following their elimination last from the competition last winter.
They missed out on a top four spot to Villa, who are now preparing under Unai Emery for their first jaunt back in the European big time since the early 1980s – during a period in which they won the competition. Failure to earn another campaign in the Champions League this year has, naturally, cost United.
They have made a loss for last season of up to £113m, which is a rather staggering amount considering their revenue was worth up to £661.8m – a figure boosted by those Champions League nights and the riches that come with it, including broadcasting income.
United made a loss of £28.7m for 2022-23 and it’s considered that the significant rise in losses has accumulated due to expenditure on transfer fees and wages. The wage bill rose by £33.3m. Interest costs hit £61.8m for the year while the club also spent £47.8m on costs incurred in relation to the 27.7% sale to Sir Jim Ratcliffe – the INEOS founder completed his stake purchase on Christmas Eve but he wants to cut costs at Old Trafford.
Despite all the daunting numbers which were published in the club’s accounts, United insist that they’ve remained within the well documented limitations brought about by the Profitability and Sustainability Rules, which Villa know all about from their own dealings this summer.
Indeed clubs in the Premier League and below have already fallen foul of PSR; Everton and Nottingham Forest had points deducted last season, while Sheffield United also began this term on -2. Villa had a 30th June deadline – the official end of the season – in which to ensure they were complying with the rules and that meant having to sell players, including Douglas Luiz.
Villa owner Nassef Sawiris, as well as Monchi and Damian Vidagany, have each in turn bemoaned the restrictions in place which would appear to protect certain clubs and prevent others – Villa included – who possess ambition and the financial capacity to invest, from bridging the gap and challenging for major honours.
United have lost £257.4m over the last three year cycle, despite clubs only being permitted to lose £105m over that time, yet they claim that they’re obeying the rules because much of those losses are ‘allowable’ – relating to academies, the women’s team and the club’s infrastructure.
Omar Berrada, the club’s new chief executive officer, said: “It has been a busy off-season for the club with successful training camps for both our men’s and women’s teams. We have strengthened our men’s first team with five exciting players and put a new football leadership structure in place to provide greater support to our manager, Erik ten Hag.
