Why the Manchester City scandal sheds light on Manchester United's finances

The Premier League independent commission's report was emphatic: Manchester City's revenues had been artificially inflated by more than £830m. In essence, the City hierarchy had spent years circumventing financial regulations by injecting owner funding disguised as legitimate sponsorship deals.

The disclosure coincided with Manchester United filing their annual accounts to the New York Stock Exchange for the financial year ending 30 June 2026. The figures revealed net interest payments climbed from £34m to £37m. According to football finance expert Swiss Ramble, total net interest paid under the Glazer family's leveraged buyout in 2005 has now reached £852m.

It illustrates a stark contrast in how the two Manchester giants have been run: while one club's owners poured vast sums in, a comparable fortune flowed out of the other simply to service debt.

United chief executive Omar Berrada, who arrived from Manchester City, addressed the financial results by stressing the importance of sustainability: "While these results confirm we are heading in the right direction, we will remain disciplined to ensure our financial stability."

United reported record revenues of £677.6m following a third-place Premier League finish and Champions League qualification, with projections for the 2026-27 season forecasting a rise to £760m. Even so, Berrada's cautious tone reflects the significant financial hurdles that remain.

The club confirmed £191.7m in transfer commitments for arrivals such as Carlos Baleba, Andrey Santos and Youri Tielemans, alongside academy talent like Tynan Thompson, payable over five years. At the same time, United drew down an additional £90m in credit, taking their total debt to a staggering £1.15bn — nearly double the £667m figure from June 2021.

Prior to 30 June, the club's transfer debt stood at £375m, with £218m due by mid-2027. United also face potential future add-ons of up to £122.8m should newly signed players achieve specific performance milestones.

June's debt restructuring added $125m (£94.36m), while £63.5m was allocated for land acquisition relating to the proposed new stadium project. That expenditure prompted frustration among sections of the fanbase, who believed the funds should have been invested directly into Michael Carrick's squad.

On the wage front, United reduced their payroll to £302m for the 2025-26 season (down from £313m the previous year) as a consequence of missing out on European football. That brought their wages-to-turnover ratio down to an impressive 45%.

Despite a relatively modest net spend of £148m this summer, player trading remains an area of concern. The club brought in just £47m from departures in the latest transfer window, ranking them 11th in the Premier League for player sales.

Since Romelu Lukaku was sold to Inter Milan for £74m in 2019, United have commanded fees of more than £25m for only four players: Mason Greenwood, Scott McTominay, Rasmus Hojlund and Alejandro Garnacho.

That pattern continued this summer with several youth departures. Radek Vitek joined Middlesbrough in a deal that could be worth up to £14m, Toby Collyer moved to West Bromwich Albion, while defenders Tyler Fredricson and James Overy left on free transfers.

Crucially, all of these deals included substantial sell-on clauses and buy-back options, underpinning United's restructured approach to maximizing value from outgoing transfers.

Supporters once again voiced their anger against the ownership with a protest staged ahead of the home derby defeat by Manchester City on 13 September.

In June 2023, Premier League clubs voted to cap future leveraged buyouts at roughly 65% of a club's total value. The measure was introduced in response to ALK Capital's takeover of Burnley in December 2020, though many United supporters would argue it arrived 18 years too late.

The fallout from Manchester City's case has inadvertently turned the spotlight back onto Old Trafford's financial reality.

With full debt clearance unrealistic anytime soon, Berrada and his executive team face a delicate balancing act: curbing costs, clearing outstanding transfer liabilities, reducing revolving credit facility usage, and funding a new stadium project, all while fielding a competitive squad on the pitch.

The disparity in European earnings is telling: in 2017-18, United earned £80m in prize money by reaching the Champions League quarter-finals, compared to just £31m for reaching the 2024-25 Europa League final. Furthermore, their latest kit deal with Adidas includes a £10m annual penalty clause if they fail to qualify for Europe's elite competition.

When Carrick leads his side out against bottom-of-the-table Tottenham at Old Trafford on 10 October, the immediate priority will be climbing out of 12th place. While the club may not state it publicly, returning to the Champions League remains vital to safeguarding United's financial future.

Simon Stone, BBC Sport