Omar Berrada, CEO of Manchester United, announced that the administrative reorganization had a “positive financial impact” on the club, after achieving an increase in profits following recent reductions in the number of employees.
The club achieved an operating profit of 32.6 million pounds (equivalent to 44 million dollars) during the first half of the financial year, compared to a loss of 3.9 million pounds in the same period of the previous year.
In the last quarter alone, operating profit reached £19.6 million compared to £3.1 million in the corresponding quarter last year.
These positive results come after Jim Ratcliffe, a minority shareholder and head of football operations, supervised a program to restructure and reduce the number of employees, as about 450 jobs were cut.
In its latest statement on Wednesday, the club confirmed “the positive impact of the programs to reduce operating costs and the number of employees that were implemented during the past year.”
In terms of revenues, Manchester United’s total revenues for the second quarter amounted to 190.3 million pounds, which is less than 198.7 million pounds in the same period last year.
Commercial revenues also decreased from 85.1 million to 78.5 million pounds, and match-day revenues decreased from 52 million to 49.5 million pounds.
This decline is partly due to the team not qualifying for European competitions last season, which deprived it of revenue from continental matches.
However, with the team temporarily occupying fourth place in the English Premier League this season under the leadership of Michael Carrick, and the women’s team reaching the quarter-finals of the Champions League, the club believes it is in a good position to boost its profits in the future.
Manchester United confirms that it remains committed to achieving revenues of between 640 and 660 million pounds sterling for the entire financial year.
