Latest news with #cashreserves
New York Times
4 days ago
- Business
- New York Times
Manchester United financial results reveal drop in cash reserves ahead of summer transfer window
Manchester United's cash reserves fell to £73.2million during the third quarter, despite Sir Jim Ratcliffe injecting $300m (£238.5m) since becoming a minority owner. According to the Old Trafford club's latest financial results, United's cash reserves fell by £22.5m during the three months up until the end of March. Advertisement Although this was an improvement on £67m in cash during the same period last year, it follows significant investment by Ratcliffe since purchasing a 28.9 per cent minority stake last year. United's cash position is set to be a complicating factor during an important summer transfer window, as the club's hierarchy looks to back head coach Ruben Amorim with the signings of Matheus Cunha and Bryan Mbeumo. United agreed a deal for Cunha with Wolverhampton Wanderers last week, but only after Wolves rejected a proposal to pay the £62.5m fee over five years, insisting on three payments over two years instead. United's third quarter results revealed they still have the ability to borrow up to £90m in cash under their revolving credit facility, which could help finance transfer spending but would add to a debt pile of £713.2m. In March, Ratcliffe claimed that United were in danger of running out of cash and going bust by Christmas had they not carried out a range of cost-cutting measures across the club, including cutting up to 450 jobs. Ratcliffe also revealed that even if United make no new signings this summer, the club will 'write a cheque for £89m' this summer to pay for players already at the club, including Casemiro, Andre Onana and Rasmus Hojlund. According to the third quarter results, United have already spent a net £195.6m in cash on intangible assets this season — predominantly transfer fees — which is already £41.9m than they spent during the entirety of the 2023-24 season. Despite United's cash issues, the club reiterated that it remains 'committed to, and in compliance with, both the Premier League's Profitability and Sustainability Rules (PSR) and UEFA's Financial Fair Play Regulations (FFP)'. As The Athletic revealed this week, United's PSR and FFP calculations are based upon the account of Red Football Ltd — a UK-registered subsidiary, which posted significantly lower losses than their New York-based plc last season. Despite recording their lowest finish of the Premier League era in 15th place, United tightened their projected revenue guidance for the 2024-25 campaign to between £660-670m — expecting to be at the higher end of this range. United's year-on-year broadcast income to the end of March fell by £49.1m, a result of failing to qualify for the Champions League and an underwhelming Premier League campaign. Improvements in matchday, up £18.5m (18 per cent) and commercial income (up £13.4m, or 6 per cent) lessened the blow, and have ensured United's full-year revenue projection is consistent with 2023-24 levels. Advertisement Wages fell by £42.6m compared to the same period last year — a result of missing out on the Champions League but also the January loan exits of Marcus Rashford, Antony and Tyrell Malacia. United's wage bill to 31 March was 15 per cent lower than in 2023-24, and at its lowest level this far into a season since 2019-20. United also paid £2.7m in exceptional costs during the third quarter as a result of the club's ongoing restructuring and the exits of senior leadership figures. Omar Berrada, United's chief executive, said: 'We were proud to reach the final of the UEFA Europa League, but ultimately, we were disappointed to finish as runner-up in Bilbao. 'We had a difficult season in the Premier League, which we all know fell below our standards and we have a clear expectation of improvement next season.' Berrada added: 'We remain focused on infrastructure, with the redevelopment of our Carrington Training Complex continuing and on track, which will be the heart of our club, providing world class facilities for all our teams and our staff. 'We have also announced our aspiration to pursue a new 100,000 seat stadium, sitting at the heart of the regeneration of the Old Trafford area, which would be a catalyst for growth and investment in our local community. 'We are continuing to work with all the relevant stakeholders, including central government, to support their vision for growth.' (Top photo of majority owner Avram Glazer and minority shareholder Jim Ratcliffe:)
Yahoo
10-05-2025
- Business
- Yahoo
School funding worries: Area treasurers, superintendents decry policy change
May 10—BATH TOWNSHIP — The Bath school board adopted a resolution Wednesday opposing a provision of the Ohio House's two-year budget bill that would cap public K-12 school cash reserves at 30% of operating expenses. Supporters of the proposed cap on cash reserves, also known as carryover balances, say schools are carrying too much cash from year to year, which they believe should be returned to taxpayers. Opponents say capping cash reserves will hamper long-term planning and result in uneven tax rates, with tax rates rising and falling from year to year based on a district's operating expenses and cash balance. The carryover balance cap would affect more than 500 school districts in Ohio, according to the Ohio School Boards Association, which opposes the measure. Bath's concerns "It would be a loss of local control," said Bath schools Treasurer Joel Parker, who intends to testify before the Senate next week in opposition to the carryover cap. The resolution adopted Wednesday says Bath schools "has taken a conservative approach (to) fiscal management to always be prepared for unforeseen circumstances and excellent bond rating to maximize utilization of taxpayer money and should not be punished for this." The board cites its aging infrastructure, inflation and "unfunded mandates," which require a "well-defined plan for short-term and long-term spending." Such spending is "not flat by design," according to the resolution. The Bath school board is asking lawmakers and Gov. Mike DeWine "to allow local school districts to manage their districts by funding all schools fairly and continuing to allow management of taxation levels and cash balances at the will of local residents." Parker said he'd like to see lawmakers remove the carryover cap from budget discussions so lawmakers can work on property tax reform separately. Lima's losses at $8.2 million Lima schools could lose as much as $8.2 million in the first year if the proposal is approved, though that figure could change if the school board takes action and based on the timeframe the legislature uses to calculate district spending and reserve balances, Treasurer Heather Sharp said. Sharp said the district's cash balance exceeds operating expenses by 44%. That's down from last year's 68% rate, she said. "We are on the right trajectory in terms of lowering our cash on hand," Sharp said. Spencerville's $5 million cut Spencerville Superintendent Brian Woods said his district could lose as much as $5 million in existing funds if the proposal prevails. The district's cash balance reached 71% of operating expenses as of last June. "This is deeply concerning, as we have a carefully planned, multi-year capital improvement plan that relies on these funds for essential, long-term investments," Woods said. "A cap would not eliminate the need for these projects — it would only eliminate the funds we've responsibly saved to complete them. "The result would force us into an impossible position: either allow our facilities to deteriorate or return to voters to request additional funding. Neither option makes sense when we already have taxpayer-approved dollars set aside for these needs." Deficit spending in St. Marys St. Marys Superintendent Bill Ruane said his district plans to use its cash reserve, which is roughly 62% of the previous year's expenditures, to cover a deficit projected by the district's five-year forecast. "Instead of hiring and creating new positions and using money received during COVID, we offset current expenses to build a healthy cash balance to ensure long-term fiscal health, which under this proposal would be erased," Ruane said. He estimates the district could lose $8.8 million in local revenue if the cap is approved. Budget debate Lawmakers are still drafting the state's biennial budget, which will determine school funding for the next two years. In addition to the debate over carryover balances, lawmakers are debating the future of the Fair School Funding Formula, a bipartisan formula introduced in 2021 to comply with Ohio Supreme Court rulings, which found the state relied too heavily on property taxes to fund public K-12 schools. Gov. Mike DeWine's version of the budget retained the formula but froze cost inputs at 2022 levels. The House version of the bill would increase public K-12 school funding by $226 million using a different formula, but would cap carryover balances at 30% of annual operating expenses. Both bills would increase funding for private school vouchers. The Senate is now working on its version of the bill, which must be reconciled with the House and signed into law no later than June 30. Biggest change in policy Ottawa-Glandorf Superintendent Don Horstman described the carryover cap as "the biggest change to public school tax policy in 50 years" written "in less than a week," the superintendent said during an April town hall in Ottawa. Horstman said it took years of delayed maintenance and an income tax levy for his district to go from having 45 days cash on hand, far below the recommended 90 days cash, to having a $10 million cash reserve, or six months cash. "We were derided by some of the current House leadership for not being more frugal and keeping cash on hand for economic emergencies we were experiencing (in 2008)," Horstman said at the town hall. "Now some of these same leaders are attacking districts for being good stewards." Ottawa-Glandorf schools would lose an estimated $6.9 million in revenue the first year if the 30% carryover cap is approved, Horstman said during a town hall meeting in April. "That is devastating to a school district," he said. The district's $10 million cash reserve balance is enough to cover six months of expenses. The cash balance took years to build: Ottawa-Glandorf once held as little as 45 days cash when it passed an income tax levy in 2019, far below the recommended minimum of 90 days cash balance, Horstman said. The district delayed maintenance projects, but now plans to use its reserves to replace a 25-year-old HVAC and roof at the high school, as well as decades-old parking lots, tennis courts, stadium lights and other projects, Horstman said. Featured Local Savings
