Why Manchester United will have to work smarter as PSR problems lurk

This week saw Manchester United post their quarterly financial results.

As a publicly traded company, United are required to update shareholders and the New York Stock Exchange as to the financial condition of the club every three months, with the most recent set of results showing a pre-tax loss of £89.2m for the third quarter of the financial year, ending March 31.

The club still has another three months to take into account for the 2023/24 financial year, up to the end June, and after such heavy losses in the early part of the year, attributed by the club largely to costs associated with the share purchase by Sir Jim Ratcliffe and Ineos, as well as nine fewer home games during the same time last year.

The published financials have placed scrutiny on the club’s profit and sustainability rule (PSR) position, with the club sailing close to the wind as to what is permissible.

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The PSR acronym has become part of the football vernacular over the past 18 months, with Everton, twice, and Nottingham Forest being handed points deductions for PSR breaches during the course of the 2023/24 season.

PSR, the Premier League’s financial controls that were introduced in 2012, allow for clubs to lose as much as £105m over a three-year period, with allowable deductions for losses related to investment in infrastructure, the academy, the women’s team, community initiatives, as well as the impact of Covid-19 on finances.

Several clubs had to make moves to remain PSR compliant last month, with the June 30 date being the year-end for all but three Premier League clubs, and player trading occurring to maximise profit in