Manchester United has reported a net loss for the first quarter of its 2025-26 financial year, with the club swinging into the red mainly because of its absence from European competition this season. The first-quarter results highlight how failing to qualify for continental football has dented revenue streams at Old Trafford.
Quarterly financial results
- Manchester United posted a net loss of £6.6 million ($8.83 million) for the quarter ended September 30, compared with a £1.4 million profit in the same period last year.
- Total revenue for the quarter fell about 2 per cent, while player and staff wages dropped 8.2 per cent after cost-cutting measures, including workforce reductions.
Impact of missing European football
- The club’s absence from European competition this season — the first time in over a decade they have had no continental fixtures — has significantly reduced broadcasting revenue and matchday income. European games typically generate substantial TV money and fan interest, so missing out has left a noticeable gap in United’s finances.
- Supporter criticism has grown as domestic struggles on the pitch coincide with this downturn off it. Compounding the issue, key sponsorship revenues have also declined recently as some deals ended.
Cost-cutting and strategic measures
- Chief Executive Omar Berrada described recent job cuts and other restructuring as necessary for a “streamlined, effective organisation” that can compete both commercially and on the field in the long term.
- Wages have been reduced, and ticket prices were increased under minority owner Jim Ratcliffe, who oversees football operations. These steps aim to balance the books but have drawn mixed reactions from fans.
Outlook and forecasts
- Despite the disappointing quarterly result, United maintained its fiscal 2026 revenue forecast of £640 million to £660 million, with projected core profits between £180 million and £200 million.
- The club also continues to invest — spending around £230 million in the summer transfer window and planning a new £2 billion, 100,000-seat stadium as part of its long-term commercial strategy.
Broader implications
This swing into the red underscores how crucial European competition is to the finances of top clubs like Manchester United. Without Champions League or Europa League matches drawing broadcast and matchday revenue, even globally recognised clubs can see their bottom line weaken, especially amid rising costs and on-pitch underperformance.
Summary: Manchester United’s latest financial figures show a first-quarter loss driven largely by the absence of European football, lower broadcasting and ticket revenue, and ongoing restructuring — even as the club projects stable annual revenues and pushes forward with ambitious long-term plans.
