Premier League clubs can only post three-year losses of up to £105m but Manchester United were given an exceptional allowance of £40m
Manchester United were granted an exceptional allowance(Image credit: Getty Images)
Everton and Nottingham Forest fans have been left unimpressed by the revelation that Manchester United received a larger covid allowance than other Premier League clubs.
The figure refers to the 2021/22 accounts, with finance expert Stefan Borson saying on talkSPORT that Manchester United would have failed the Premier League's Premier League Profit and Sustainability Rules had it not been for an exceptional allowance of £40m in 2022.
Borson said: "United would have failed PSR for the season just gone say for two things: One, it appears that they were given an exceptional allowance of £40million for COVID in 2022. The most that any other club got in that period was around £1million. It also seems that they have been given an allowance for around about £35million of exceptional cost relating to the share sale to [Sir Jim] Ratcliffe.”
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Manchester United's PSR exception explained
Everton and Nottingham Forest were both hit with points deductions for PSR violations last season, leading fans of both clubs to question why United were granted a more sizeable exception for their loss of revenues during the covid pandemic.
Football finance academic and journalist Kieran Maguire explained on X: "Have spoken to senior sources at Club & elsewhere. The reasons are 1: Cancellation of Summer 2021 tour 2: Bad debts caused by commercial partner insolvency. 3: Club unable to fulfil sponsorship partner obligations in summer 2021. 4: Broadcaster rebates PL & UEFA.
"Because #MUFC are listed in NY has to disclose more information than other clubs, many of whom have COVID claims but not shown in accounts. Conclusion: No corruption from PL"
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Sir Jim Ratcliffe bought a minority stake in Manchester United earlier this yearEs (Image credit: Getty Images)
As Maguire went onto explain, the scale of United's finances compared with their rivals was a factor behind the Premier League's decision to grant an exception.
Although every club was hit by a loss of revenues during covid, United's loss of sponsorship revenues will therefore have been more significant. United had revenues of £540m in 2021/22, compared with Everton's £181m and then-Championship Forest's £30m.
PSR rules only permit losses of up to £105m over any three-year period. Most other clubs' position ahead of the new season has not been publicly disclosed as they are limited companies who must only publish to Companies House within 12 months of the end of a financial year, but Manchester United are listed on the New York Stock Exchange and therefore must report up-to-date finances once a quarter.
Steven Chicken has been working as a football writer since 2009, taking in stints with Football365 and the Huddersfield Examiner. Steven still covers Huddersfield Town home and away for his own publication, WeAreTerriers.com. Steven is a two-time nominee for Regional Journalist of the Year at the prestigious British Sports Journalism Awards, making the shortlist in 2020 and 2023.
