Man United ‘have breached PSR’ – Stefan Borson drops points deduction verdict
Manchester United likely breached the profit and sustainability rules (PSR) last season unless they were allowed to add back their exceptional costs.
That is the view of former Man City financial advisor Stefan Borson, who exclusively told Football Insider Man United made an operating loss of around £100million in 2023-24, opening up the threat of a potential points deduction if they have breached the rules.
The Premier League giants reported a £71.4million net loss for the first three months of 2024, with the PSR rules stating top-flight clubs can lose a maximum of £105million over a rolling three-year period.
They also spent £40million in exceptional costs, £30.3million of which was related to Sir Jim Ratcliffe buying his 27.7 per cent stake in the club in February this year.
Man United are forecasting their revenue for 2023-24 to reach a club-record high of £660million, while there adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) is expected to be £140million.
Man United could breach PSR rules if costs not added back
Borson believes that would mean Erik ten Hag’s side have breached the PSR rules unless they were allowed to add back their exceptional costs.
He told Football Insider: “From the EBITDA number, you take off the exceptional costs and player amortisation, which could be another £180million and they make a pretty hefty £100million operating loss in the season.
“They are notoriously poor sellers of players.
“If you look at someone like Chelsea, they will probably be generating about £120million a year in player-sale profits.
“United probably did less than £40million.
“It means on the face of it, they actually breached PSR for the season just gone unless they were in some way allowed to add back some of those exceptional costs.
“You are not typically meant to do that, but I think they must have done it because there was no sign that United were scrambling around before 30 June to sell players.
“You would have to assume they have passed PSR for 2023-24, but quite how they have done it doesn’t look that obvious on the numbers.”
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