Manchester United has told fans it cannot sustain its current financial losses and risks breaching Premier League rules after facing a backlash over rising ticket prices.
The record 20-time English champion, which is co-owned by the American Glazer family and British billionaire Jim Ratcliffe, said it had lost more than 300 million pounds ($371 million) over the past three years.
“This is not sustainable and if we do not act now we are in danger of failing to comply with PSR/FFP (financial) requirements in future years and significantly impacting our ability to compete on the pitch,” United wrote in a letter to fan group The 1958 and seen by The Associated Press.
Supporters have hit out after United raised its lowest-priced tickets to 66 pounds ($81) partway through the season. Previously, the lowest priced ticket was 40 pounds ($49).
“We will get back to a cash positive position as soon as possible and we will have to make some difficult choices to get there,” United wrote.
It said it did “not expect fans to make up all the current shortfall” but would look at its ticket pricing strategy to make sure it was “charging the right amount."
The Premier League’s profit and financial sustainability rules (PSR) allow clubs to lose a maximum of 105 million pounds ($132.5 million) over a three-year period or face sanctions such as points deductions. Last season, Everton and Nottingham Forest were deducted points for breaking those rules.
There are also sanctions for failing to comply with UEFA’s financial fair play (FFP) regulations.
While United reported losses last year of 113.2 million pounds ($140 million) for the year ending June 30, certain areas of spending are not included the league’s PSR calculations.
Still, the club has outlined its concerns about its ability to comply with the rules.
Ratcliffe, who is one of Britain’s richest people and completed a partial buyout of United last year, has overseen an extensive restructuring program. That has included cost-saving initiatives that saw staff redundancies of around 250 roles.
“None of this has been easy, but we believe it is essential to restoring financial sustainability to the club which will underpin us as we work to get back to the top of English and European football,” United said.
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United also fired Erik ten Hag as manager in late October, just a few months after handing the Dutchman a contract extension through next season. Then, in December, the club announced that sporting director Dan Ashworth would leave by mutual agreement less than six months after taking over the role as part of Ratcliffe's overhaul.
United's financial issues come at a time when it is need of improvements on the field.
Last week, head coach Ruben Amorim said this was “the worst, maybe, in the history of Manchester United” after defeat to Brighton left it 13th in the standings and closer to the relegation zone than Champions League qualification.
His need for funds to add to his squad could see the departure of leading players like Marcus Rashford and Alejandro Garnacho during the midseason transfer window.