Premier League clubs can only report three-year losses of up to £105 million, but Manchester United was allowed an extraordinary exemption of £40 million.
Everton and Nottingham Forest fans were upset by the news that Manchester United earned a higher covid allowance than other Premier League clubs.
The amount refers to the 2021/22 accounts, and finance expert Stefan Borson stated on talkSPORT that Manchester United would have broken the Premier League’s Profit and Sustainability Rules if not for an unusual allocation of £40 million in 2022.
Borson stated, “United would have failed PSR for the season just gone say for two reasons: One, it appears that they have been granted an unusual allowance of £40 million for COVID in 2022. During that time, no other club received more than about £1 million. It also appears that they have been awarded an allowance for around £35 million of exceptional costs related to the share sale to [Sir Jim] Ratcliffe.”
Manchester United’s PSR exception explained
Everton and Nottingham Forest were both penalized with points reductions for PSR infractions last season, prompting fans of both teams to question why United was granted a larger allowance for revenue losses during the covid epidemic.
Kieran Maguire, a football finance academic and writer, revealed on X: “I’ve spoken to senior sources within the club and abroad. The reasons are one: cancellation of the Summer 2021 tour. 2: Bad debts resulting from commercial partner insolvency. 3: Club is unable to meet sponsorship partner requirements in summer 2021. 4: PL and UEFA offer subsidies to broadcasters.
“Because #MUFC is listed in New York, they are required to reveal more information than other clubs, many of which have COVID claims that are not displayed in their reports. Conclusion: No corruption from the PL.”
According to Maguire, the enormity of United’s finances in comparison to its rivals influenced the Premier League’s decision to give an exception.
Although every team experienced financial losses under covid, United’s sponsorship revenue loss was likely to be greater. In 2021/22, United had revenues of £540 million, compared to Everton’s £181 million and then-Championship Forest’s £30 million.
PSR laws only allow for losses of up to £105 million over any three-year period. Most other clubs’ positions ahead of the new season have not been publicly disclosed because they are limited companies and must only publish to Companies House within 12 months of the end of a fiscal year, whereas Manchester United is listed on the New York Stock Exchange and must report up-to-date finances once a quarter.
