Will Man Utd be hit with a points deduction? Red Devils' finances explained after £113m loss as club issue defiant PSR stance

The Red Devils have announced huge losses for 2023-24 in their latest accounts. United posted a net loss of £113.2 million ($147m) and have now made a loss for the last five years in a row. However, the club are confident they are compliant with the Premier League's spending rules, and will therefore not face a points deduction, because not all their losses fall under PSR calculations. United have invested in many sectors that are considered to be "allowable losses" under PSR such as youth development, women's football, the club's infrastructures and community projects, according to Sporting News. The Red Devils also posted record total revenues of £661.8m ($862.4m), which are predicted to rise next year.

Premier League clubs including Everton and Nottingham Forest have already been hit with points deductions for breaching PSR rules. Clubs are not allowed to lose more than £105m ($136.8m) over a three-year period. United's account show they have exceeded that limit, but the club believe they are compliant because of where the money has been invested.

Chief executive officer Omar Berrada said in a statement: "The club remains committed to, and in compliance with, both the Premier League's Profit and Sustainability Rules and UEFA's Financial Fair Play regulations."

Manchester United have recently sold academy graduate Scott McTominay to Napoli in a transfer that appears to have been made to help comply with PSR rules. The midfielder moved on a deal worth €30.5 million (£25.4m/$33.6m) and the sale will go into the books as 'pure profit.'

Manchester United are currently working hard to cut costs and have announced plans to axe 250 jobs at Old Trafford. The club also have work to do on the pitch with Erik ten Hag's side having managed just one win so far this season ahead of Saturday's trip to Southampton.