Manchester United has recently faced financial challenges, primarily due to rising player costs and operational expenses. Despite this, the football club managed to report revenues of £662 million for fiscal year 2024, slightly surpassing its forecast. However, the club’s EBITDA for the same year decreased to £148 million from £155 million in the previous year. The operational restructuring and leadership changes that are currently underway are expected to result in cost savings of £40-45 million annually by fiscal years 2025 and 2026.
According to analysts at Jefferies, Manchester United’s global recognition and extensive fanbase are key factors contributing to the club’s resilience and strength despite financial setbacks. The club boasts over 1 billion global fans, and strategies to enhance fan engagement are expected to yield long-term benefits. Despite financial losses, Manchester United reported record attendance levels and ticket sales in FY 2024. The paid membership program, with more than 438,000 members, is among the largest in global sports. Additionally, the waiting list for season tickets has expanded to 171,000.
In response to financial challenges, Manchester United is actively exploring new revenue streams. One such initiative is the launch of an e-commerce platform in partnership with SCAYLE, offering in-app purchases, digital ad sales, and eSports opportunities. This platform is projected to boost the club’s retail, merchandising, and licensing revenues by £30 million. Despite the club’s brand strength, ongoing financial risks include escalating player costs and a more mature phase in the sponsorship business with limited new deal opportunities. Manchester United remains focused on securing higher-margin global sponsorship agreements to mitigate these risks.
Jefferies analysts maintain an optimistic long-term view of Manchester United’s potential for value creation. The club’s market capitalization currently stands at £2.1 billion, with Jefferies issuing a buy rating and a price target of $26, representing a 59% upside potential from its current valuation. Despite financial challenges, Manchester United’s brand value and extensive fanbase ensure that it continues to be a dominant force in the global sports industry. Through strategic initiatives and operational changes, the club aims to maintain its financial resilience and adapt to a changing economic landscape.