Manchester United debt tops £1bn despite record revenue

Manchester United's debt remains above £1bn despite record revenue and an operating profit, according to BBC Sport's report on the club's latest financial results. United also disclosed spending £63.5m on land for their proposed new stadium, as Sir Jim Ratcliffe's cost-cutting programme continues alongside preparations for the project.

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Revenue reached £677.6m and operating profit was £22.6m, even though United had gone without European football for the first time in a decade. The results arrive against a difficult sporting backdrop: the club are 12th in the Premier League, have already exited the EFL Cup and are facing supporter protests.

BBC Sport reported that overall debt had fallen from £1.3bn at the end of December but still exceeded £1bn. Its components include £577.6m in historic borrowing, £111.4m drawn on a revolving credit facility and outstanding transfer payments. Club sources told the BBC that transfer fees accounted for approximately three-quarters of the £473m recorded as trade and other payables.

The stadium land purchase was funded through additional borrowing arranged during a summer refinancing. United said the extra funds were intended for the stadium, although the loan sits in the club's accounts. The proposed venue would stand 350 yards from Old Trafford and is expected to cost more than £2bn, the BBC reported.

Financing expenses increased sharply. Annual net finance costs were £69.6m, up 228.3%, with United attributing most of the rise to a foreign-exchange loss. Meanwhile, the club saved £8.5m on a projected £16.5m payment to former manager Ruben Amorim after he took a job at AC Milan.

Staff costs fell by £11.3m to £302m. United attributed the reduction primarily to changes in the men's first-team squad and savings from workforce reductions over the previous two financial years. Two rounds of redundancies resulted in 450 people losing their jobs, according to the BBC report.

Chief executive Omar Berrada said the record revenue reflected the strength of the business and the work carried out over the past two years. He also said United would maintain financial discipline. Berrada pointed to summer additions to both senior teams and the return of Champions League football for the men's side.