Report claims Reductions in Player Remuneration at Manchester United, led by Sir Jim Ratcliffe
In a significant shift for Manchester United, the club has reported a substantial decrease in losses for the 2024-25 season, with an approximate £52 million drop in the wage bill. This reduction, amounting to approximately 25-per-cent, was announced in the club's latest financial disclosure.
The reduction in the wage bill is attributed to the team's failure to qualify for the UEFA Champions League last season. Manchester United finished 15th in the Premier League table, a disappointing performance that led to salary cuts for the first-team squad and a reduction in salaries across the board.
Sir Jim Ratcliffe, a minority owner and public-facing Old Trafford executive, has been instrumental in implementing strict financial controls and cuts at Manchester United since his arrival. Over the past 18 months, these measures have included 450 job cuts and various cost-saving measures.
The club's annual accounts, released on September 17, 2025, reported a net loss of £33m, a 70.8% decrease from the previous year's £113.2m loss. This marked improvement is a testament to Ratcliffe's hard-line approach to Manchester United's finances.
Despite the financial challenges, Manchester United had a chance to qualify for the 2025-26 Champions League league phase. However, they lost the Europa League Final to Tottenham Hotspur, a defeat that further emphasised the need for financial prudence. Ange Postecoglou was the boss of Spurs during the Europa League Final.
The new wage bill of £313m is roughly half of Manchester United's record £666.5m revenue. This balance between income and expenses is a step towards financial stability for the club.
However, the financial improvements have not been without controversy. Ratcliffe has claimed that Manchester United could have 'gone bust' without the strict cost controls and cutbacks he has imposed. This assertion has sparked debate among fans and analysts alike.
Manchester United shares closed down 6.28% at $15.38 on the New York Stock Exchange following the financial disclosure. Despite this minor setback, the club's financial turnaround under Ratcliffe's leadership is a promising sign for the future.
In summary, Manchester United has reported a significant decrease in losses and a reduction in the wage bill for the 2024-25 season. This financial improvement is a result of the strict cost controls and cuts imposed by Sir Jim Ratcliffe since his arrival at the club. The future looks brighter for Manchester United, but challenges remain as they strive for financial stability and success on the pitch.
