Man United may get PSR exemption from Premier League after £16m hit – Borson
Man United have released their report for the second quarter of the financial year amid a backdrop of concern at Old Trafford.
The club announced last week that revenues have fallen 12% to £198.7million for the quarter, while operating profit fell 88.7% to £3.1million from £27.5million in the same period in 2023.
Man United have recently written to fans warning they are at risk of breaching Profit and Sustainability Rules (PSR) – which could incur a points deduction at Old Trafford.
Sir Jim Ratcliffe and INEOS are spearheading a swathe of redundancies and cuts at the club as they vie to return to profitability after five consecutive years of losses.
Man United could get ‘unique allowance’ from Premier League, says Borson
As part of their accounts for the fourth quarter of 2024, the Old Trafford club have reported a loss of almost £16million in foreign exchange losses on “unhedged US dollar borrowings”.
Former Man City financial adviser Stefan Borson exclusively told Football Insider that United may have been granted a “unique allowance” from the Premier League to protect them from unfavourable currency moves – such as the US dollar surge following the re-election of Donald Trump in November.
He insisted it is not known for sure – but claimed that without special dispensation, the Red Devils could face another big PSR hit.
Borson told Football Insider: “There’s another interesting point about United’s financial losses which would appear to count under PSR.
“Because United have a lot of US-denominated debt, if the exchange rates change and the dollar strengthens against the pound, United make a big accounting loss based on that movement.
“United deal in pounds, they report their earnings in pounds. They could hedge all of their exposure to dollars, but they choose not to. That means they are exposed if there is a big move.
“In the last quarter, it has had an adverse effect which has meant their losses have increased.
| Season | Premier League finish |
| 2023-24 | 8th |
| 2022-23 | 3rd |
| 2021-22 | 6th |
| 2020-21 | 2nd |
| 2019-20 | 3rd |
“There’s nothing they can do about it, but it does mean their losses are quite high for the quarter.
“The question is whether that has an impact on the PSR calculation.
“On the face of it, it should – and that could make it even harder for them to comply with the rules.
“But it’s possible United have another unique allowance from the Premier League to exclude it – but then they’d have to exclude any profits if the pound strengthens.
“We don’t know for sure, but if this is in the mix and the dollar remains strong – United may take another hit.
“United are reporting quarterly because they are listed in the US, no one else needs to do that.”
‘Ratcliffe could demand bigger Man United stake’
Meanwhile, Football Insider has previously revealed (13 February) that Ratcliffe could demand more shares in Man United to help fund the Old Trafford regeneration project.
United’s new stadium plans could cost the club more than £2billion as they will be financially responsible for that part of the project.
The club and a stadium regeneration task force are considering plans to either expand Old Trafford or build a new facility altogether.
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