Manchester United spent £8.6m on redundancies in the first quarter of the fiscal year due to Sir Jim Ratcliffe’s drive to reduce the club workforce from around 1,000 by 250, the club’s latest accounts show. Ratcliffe, the club’s largest minority shareholder, began pruning the 250 jobs in July, a decision aimed at cutting United costs. Most of those left in the summer or autumn. The first quarter fiscal 2025 results for the period ending 30 September 2024 may also take in related fees for auditors and other payments.
A statement in the accounts said: “Exceptional items for the quarter were a cost of £8.6m. This comprises costs incurred in relation to the restructuring of the Group’s operations, including the redundancy scheme implemented in the first quarter of financial year 2025. Exceptional items in the prior year quarter were £nil.”
United’s total debt is now £714m due to “non-current borrowings” of £481.7m and “current borrowings” of £232.3m. The latter has risen from £36.5m from June’s end-of-fiscal 2024 accounts due to the club’s “revolving credit facility”, which offers access to short-term finance and, it is understood, fluctuates during the year.
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United’s summer transfer spend of approximately £200m on Joshua Zirkzee, Leny Yoro, Matthijs de Ligt, Noussair Mazraoui and Manuel Ugarte will represent a sizeable proportion of the £195.8m rise. The figure is expected to be reduced by a significant amount during the season due to revenues from sponsorship, season tickets, broadcast revenues and other income.
