Manchester United has announced that it is "in danger" of breaching the Premier League's Profit and Sustainability Rules (PSR). The club's financial turmoil arrives during a period when it desperately needs improvements on the field. Over the last three years, United has reported losses before tax amounting to £312.9 million. As a result of these financial constraints, the club remains open to offers for any senior player in the upcoming January transfer window.
Since February, Manchester United has undertaken extensive cost-cutting measures under the guidance of new co-owner Sir Jim Ratcliffe. These measures included making 250 club staff redundant over the summer. Additionally, the lowest priced ticket, previously set at £40 ($49), has been increased to £66 ($81) partway through the season. Despite these efforts, the club still faces the risk of failing to meet PSR/FFP requirements in future years.
"We are currently making a significant loss each year totalling over £300 million in the past three years."
- Manchester United
The Premier League enforces strict financial regulations, and clubs that fail to comply with PSR rules may face fines and points deductions. Under these rules, the maximum allowable loss over a three-year period is £105 million ($132.5 million). Manchester United's current financial trajectory puts it at risk of exceeding this limit.
"This is not sustainable and if we do not act now we are in danger of failing to comply with PSR/FFP (Financial Fair Play) requirements in future years and significantly impacting our ability to compete on the pitch."
- Manchester United
In light of these challenges, the club is unable to make any signings in the January transfer window due to its precarious financial position. The situation has led to significant changes within the club's management team, including the departure of sporting director Dan Ashworth by mutual agreement in December. Head coach Ruben Amorim has described the financial crisis as "the worst, maybe, in the history of Manchester United."
"We will get back to a cash positive position as soon as possible and we will have to make some difficult choices to get there."
- Manchester United
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