Manchester United on Thursday declared that it was “at risk” of violating Art First leaguePrinciples of Profit and Sustainability (PSR).
The club made this admission in a letter sent to supporters’ groups in response to concerns about rising ticket prices. United have recorded pre-tax losses of £312.9m over the past three years with a precarious financial situation preventing head coach Ruben Amorim from making any signings in the January transfer window.
“We are currently incurring significant losses each year, totaling over £300 million over the last three years,” reads a letter issued by the club. “This is not sustainable and if we do not act now, we are in danger of failing to meet PSR/FFP (financial fair play) requirements in future years, which will significantly impact our ability to compete on the pitch.
“We will return to a cash positive position as quickly as possible and will need to make some difficult choices to achieve this.”
Premier League clubs that breach the PSR rules – which allow clubs to lose a maximum of £105 million ($132.5 million) over three years – could face financial penalties and points deductions. New co-owner Sir Jim Ratcliffe has implemented extensive cost-cutting measures since taking over the club in February, including laying off 250 of the club’s staff in the summer.
Sources told ESPN that United’s tight finances mean they are open to offers for any senior player in January. This also applies to academy graduates Alejandro Garnacho.
Although the club does not want the youngster to leave, they may be forced to negotiate with either of them Chelsea Or Naples ahead of schedule.
United has also faced backlash from fans over rising ticket prices, and fans reacted when the club raised its lowest ticket prices to £66 ($81) during the season. Previously, the cheapest ticket was £40 ($49).
The club said it “does not expect fans to cover all of the current shortfall” but will review its ticket pricing strategy to ensure it “charges the right amount”.
United fired manager Erik ten Hag at the end of October, just months after extending the Dutchman’s contract until next season. Then, in December, the club announced that sporting director Dan Ashworth would leave by mutual consent less than six months after taking over the role as part of Ratcliffe’s overhaul.
Manchester United’s financial problems come at a time when improvements are needed on the pitch.
Last week, head coach Ruben Amorim said it was “perhaps the worst result in Manchester United’s history” after defeat to Brighton left the club 13th in the table and closer to the relegation zone than qualifying for the Champions League.
This story uses information from the Associated Press.
