Manchester United chief executive Omar Berrada has welcomed the ‘transformation’ in the club’s finances as the impact of Sir Jim Ratcliffe’s cost-cuts became clear.
United’s second-quarter results revealed an operating profit of £32.6million for the first six months to the end of December, compared with a £3.9m loss for the same period a year earlier.
Ratcliffe has slashed costs since becoming United’s minority owner by axing 450 jobs, reducing player wages and clamping down on spending at Old Trafford.
The latest figures released on Wednesday showed that employee benefit expenses were down £7.4m to £75.1m due to what the statement described as ‘the impact of headcount reduction programs implemented during the prior year’.
Berrada said: ‘We are now seeing the positive financial impact of our off-pitch transformation materialise both in our costs and profitability.
‘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.’
However, the club’s total revenues for the six-month period fell to £330.7m from £341.8m due to a drop in matchday and commercial income after United failed to qualify for Europe and went out of both domestic cup competitions at the first hurdle.
Omar Berrada has heralded Man United’s promising financial results as demonstrating the importance of divisive cost-cutting
The total debt remains at a record £1.3billion, although the cost of servicing it dropped to £13.9m from £37.6m in the first quarter.
United’s cash reserves have dipped to £44m despite the club borrowing an additional £25m from a revolving credit facility. They have now used up £295.7m of their £350m limit.
The results – which did not include the £10m paid in compensation paid to Ruben Amorim – underline the importance of United qualifying for the Champions League this season after breaking into the top-four under his successor Michael Carrick.
Dr Dan Plumley, principal lecturer in sports finance at Sheffield Hallam University, told Daily Mail Sport via casino.org: ‘The headlines will point to the total level of debt which is in part due to the legacy of the Glazer reign at the club. There is a large proportion of that debt that is due to transfer fees owing to other clubs; this is not unusual in football.
‘Most clubs in the Premier League in particular carry transfer debt given the large fees players move for. We see it more frequently in United’s finances as they report in more detail on a quarterly basis, but if you look at the annual accounts of other clubs, you will see the transfer debt that other clubs are carrying.
‘However, at some point, you have to try and balance that debt out, and that means either not buying players or selling them. There are also wage costs linked to this, of course. United have got some big earners off the wage bill recently which will have helped, alongside other cost-cutting measures.
‘Revenue remains a slight concern, though, more so against their rivals than their own internal benchmarks. United have produced record turnover during the Glazer reign, but in the latest Deloitte Football Money League for 2026, they slipped from fourth to eighth. This suggests that they are losing revenue ground against their closest European rivals.
‘This shows the importance of getting back into the Champions League on a regular basis and the new stadium project. It is not a desperate stage right now, but United don’t want to be missing out on Champions League too many years in a row.
‘This links back to debt, and debt in itself is not a bad thing; not being able to service the debt is the problem.
‘Net finance costs are down in these figures, which is positive as that debt has to be paid as it carries certain obligations. Likewise, the revolving credit facility has obligations and is not a bottomless pot of money. Transfer debt can be kicked further down the road providing other clubs are prepared to negotiate.
‘I am not saying it is an insignificant amount of debt, but transfer fee debt is different to true finance debt. Providing that United have the ability to continue to service the true finance debt, then they will be okay. However, revenue will be a key factor in this, as will profit given the way the Glazer’s run the club.
‘All eyes in this regard will be on where United finish this season and whether or not they can get back into the Champions League.’
