Why Man United will avoid Premier League points deduction despite recording £257m loss

The reason Manchester United will not receive a Premier League points deduction, despite posting losses of over £257 million has been explained.

Announcing losses of £113.2 million for the last twelve months, the Red Devils have faced setbacks financially news which comes after a big summer of spending.

Signing five players, United brought in several key players to the first team spending a total of £175 million to bring in players such as Manuel Ugarte and Joshua Zirkzee.

Alongside the £113.2 million from this year, United also recorded losses of £28.7 million in 22/23 and £115.5 million in 21/22. Accumulating United’s losses across these three years means the Red Devils have announced a deficit of just north of £257 million.

In normal circumstances, posting losses of over £105 million across a three-year period would cause a break of the Premier League’s profit and sustainability rules.

These rules led to both Everton and Nottingham Forest receiving points deductions last season, having been seen as in breach of the legislation laid out by the Premier League.

In the case of United, it is expected that despite posting such massive losses, the Reds will not breach the profit and sustainability rules laid out by the Premier League.

Ultimately this comes down to the ability of clubs within the Prem to claim ‘add backs’, which allow certain expenditures to not be included in the Premier League’s calculations against the club.

These add backs will only be considered if the Premier League recognises that such expenditures were in the overall interest of the club.

In 2023/24 United posted a 2% increase in revenue from the previous year, bringing in £662 million.

Releasing a statement on United’s reported losses, the Red Devils’ chief executive Omar Berrada stated the following:

“The club remains committed to, and in compliance with, both the Premier League’s profit and sustainability rules and Uefa’s Financial Fair Play regulations.”

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