Manchester United CEO Omar Berrada has said the club’s summer transfer strategy was shaped by the need to maintain “financial sustainability” after the latest accounts revealed increased overall losses.
United reported record full-year revenue of £677.6m on Wednesday, alongside an operating profit of £22.6m.
Despite those figures, the club recorded an overall loss of £43m, up from £33m the previous year.
Borrowing also increased by £95m, taking the club’s total debt to £583m.
United spent £155m on midfielders Andrey Santos, Youri Tielemans and Carlos Baleba during the summer transfer window, but their overall expenditure was considerably lower than that of their traditional top-six rivals.
Manchester City, Liverpool, Arsenal, Tottenham and Chelsea all spent more, with City, Liverpool, Tottenham and Chelsea each paying at least £100m for an individual player.
United remain the only traditional top-six club yet to spend £100m on a single signing.
Speaking as the club published its fourth-quarter and full-year financial results, Berrada said United would continue to be cautious with their spending.
“While these results confirm that we are on the right trajectory, we will continue to take a disciplined approach to ensure our finances remain sustainable,” said Berrada.
“With that financial sustainability in mind, we have strengthened both our men’s and women’s teams during the summer window and our men’s team has seen the return of Champions League football to Old Trafford.”
United continue to cut costs
The club’s latest figures also underline the financial pressures United have faced while attempting to improve the business.
In a statement accompanying the results, United said the club “continues on its journey to improve operational efficiency and financial sustainability.”
A club source added: “stabilising the business has required, and will continue to require, hard work and financial discipline.”
One of the significant costs recorded during the financial year was the £8.2m paid to Ruben Amorim and his coaching staff following the Portuguese manager’s dismissal in January.
United subsequently saved around £8.5m when Amorim agreed to take charge of AC Milan during the summer.
The club also repaid around £150m from its revolving credit facility between March and June as part of efforts to reduce its financial commitments.
United’s accounts also revealed a £63.5m ($84m) payment for land connected to plans for a new stadium.
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