Manchester United is finally beginning to balance its books, but the price of fiscal stability has been a historic reduction in the club’s workforce. In a financial statement released today, February 25, 2026, the club revealed that it has slashed its losses by 90% for the first half of the 2025/26 season, bringing the deficit down to just £2.5 million.
The dramatic turnaround is the direct result of a ruthless cost-cutting strategy spearheaded by CEO Omar Berrada. Over the past year, United has parted ways with approximately 450 employees—a staggering 40% of its total staff. This “right-sizing” of the club’s operations led to a 9% drop in operating expenses, saving the club millions in quarterly personnel costs.
Navigating a Year Without Europe
The financial recovery is particularly notable given the club’s current lack of UEFA competition revenue. Total income for the first half of the season fell by 3.3% to £330.7 million, but the blow was softened by the Premier League’s robust international TV rights.
- Commercial Contraction: Revenue from sponsorships and merchandising fell by 4.5% to £162.7 million. Crucially, the club’s training kit remains without a primary sponsor following the exit of Tezos—a rare vacancy for a commercial giant of United’s stature.
- Matchday Dip: With fewer games played at Old Trafford due to the absence of European nights, matchday revenue slipped to £75.7 million.
The Transfer Market as a Life Raft
Under the direction of Berrada and the Ineos sporting team, United has pivoted toward a more aggressive “sell-to-buy” model to cover a massive £406 million post-pandemic “black hole” in their accounts.
- Profit from Sales: The club generated £48.2 million in player trading profits this past summer—a 33% increase over the previous year—marking a significant departure from the era of letting high-value assets leave for free.
Analysis: The Berrada Blueprint
Since crossing the Manchester divide from City in 2024, Omar Berrada has focused on stripping back the perceived bloat of the Glazer era. While the 90% reduction in losses suggests the strategy is working on paper, the sheer scale of the redundancies has created a tense atmosphere behind the scenes at Carrington and Old Trafford.
With the club desperate to reach “break-even” by the end of the 2025/26 fiscal year, the pressure is now squarely on the pitch. Without a return to the Champions League and its associated windfalls, the club may find that there is very little left to cut without impacting its core sporting product.