Manchester United shares fell by nearly 8% in early trading on Thursday, their steepest drop in more than eight months, after the club lost the Europa League final to Tottenham Hotspur. The 1-0 defeat in Bilbao on Wednesday night means United have failed to qualify for next season's Champions League, a setback that will cost the club an estimated £100m in lost revenues.
The stock, which has lost about a fifth of its value this year, later pared back losses to 6.7%. It had hit its highest level in 11 weeks just hours before the match. Shareholders will be hugely disappointed that the Premier League club has missed out on lucrative earnings from tickets, broadcast money and sponsor bonuses associated with participation in Europe's top-tier competition.
The defeat also means United will not play in any European competition at all next season, damaging revenues and profits for 2025-26 as a rebuild of the squad gets under way. The club, which languishes in 16th place in the Premier League, just above Spurs, is heading for its lowest finish in the table in 50 years. Former first-team coach René Meulensteen described it as a 'crossroads moment' after 'the most disastrous season'.
United's financial troubles are long-standing. Since the Glazer family's takeover in 2005, the club has accumulated more than £1bn in debt, leading to hefty annual interest payments. It reported a loss of £113m last year, compared with £26m for Spurs, taking total pre-tax losses to £300m over the past three years. The club has taken tough actions, including cutting jobs, raising match-day ticket prices to £66 with no reductions for seniors or children, increasing parking charges for disabled fans and scrapping the £50 steward-of-the-match award.
Minority owner Sir Jim Ratcliffe decided in February to cut about 200 more jobs to help the club avoid going bust. In November, United predicted a profit of £145m-£160m, measured by Ebitda, for the financial year ending 30 June 2025, and forecast annual revenue of £650m-£670m from commercial, broadcasting and match-day sources. However, the Europa League defeat and absence from European competition are expected to weigh heavily on the club's finances, even as it plans a new £2bn, 100,000-seat stadium.
