That Manchester United is going through financial difficulties is an open secret.
This was seen this month when the club failed to hit top targets reported by Erik ten Hag, such as Cody Gakpo and Joao Felix, whose transfers would have commanded high fees.
United instead turned to Wout Weghorst, who was available at a reduced price reflecting the club’s crippling cash crunch.
The Red Devils were placed in fourth position by financial services firm Deloitte, which recently published its Money League 2023 report. The report details that the 20-time English champions had a 23% profit turnover.
However, according to financial expert Kieran Maguire, this reflection is not a true indication of United’s real situation.
Maguire told The Athletic: “A couple of things stand out in relation to Manchester United. The first is that your costs are rising faster than your income.”
“The second is that with regard to revenue generation, the Old Trafford commercial machine has stalled. Empty trophy cases don’t sell deals, and after seeing both Chevrolet and TeamViewer burn their fingers with deals on the front of the jersey, it will be harder for commercial brainiacs to extract additional money from sponsors.”
“Manchester United have not seen growth in matchday and commercial revenue since 2016, but in that period wages rose from £232m to £384m, putting all the pressure on broadcast revenue for cover additional costs, and broadcast revenue is determined by results on the pitch, rather than the club itself.”
The Athletic also questioned Professor John Barbour, Roger Bell and John Purcell from financial analysis firm Vysyble about United’s finances and they were also unimpressed.
According to Barbour, Bell and Purcell, United’s current situation is a self-created situation caused by the adoption of inferior strategies, priorities and actions in recent years.
It’s no surprise that the Glazers are looking for a quick exit from Old Trafford, with the club’s condition now at a critical stage.
Vysyble’s trio add that with cash shortages and the growing need for access to more credit facilities, swift financial ruin lies ahead.
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