Manchester United has warned of an unsustainable financial position after enduring losses exceeding £300 million ($371 million) over the past three years. In a letter to fan group The 1958, the club addressed financial concerns. It warned about the risk of breaching Premier League Profit and Sustainability Rules (PSR). The club also cited UEFA’s Financial Fair Play (FFP) regulations. Breaches could result in penalties, including point deductions.

“This is not sustainable, and if we do not act now, we are in danger of failing to comply with PSR/FFP requirements in future years and significantly impacting our ability to compete on the pitch,” United wrote.

United recently increased its lowest-priced match tickets from £40 ($49) to £66 ($81) midway through the season, sparking backlash from supporters. Responding to the criticism, the club explained it would not place the entire financial burden on fans. “We will get back to a cash-positive position as soon as possible and will have to make some difficult choices to get there. However, we do not expect fans to make up all the current shortfall,” the statement clarified, adding that pricing strategies would be reviewed to ensure the “right amount” is charged.

The financial crisis has prompted sweeping changes under British billionaire Jim Ratcliffe’s partial ownership. Restructuring has included significant cost-saving measures, including staff layoffs of 250 roles. “None of this has been easy, but we believe it is essential to restoring financial sustainability to the club, which will underpin us as we work to get back to the top of English and European football,” United stated.

Meanwhile, the club’s struggles have extended onto the field. Last week, head coach Ruben Amorim described this as “the worst, maybe, in the history of Manchester United,” following a defeat to Brighton that left the team in 13th place—closer to the relegation zone than to Champions League qualification.

United’s poor form has already seen the dismissal of Erik ten Hag in October, despite an earlier contract extension, and the resignation of sporting director Dan Ashworth in December as part of Ratcliffe’s overhaul. With further squad reinforcements needed, United may resort to selling key players like Marcus Rashford and Alejandro Garnacho during the January transfer window.

The club emphasised that, while difficult, these steps are necessary for recovery. “We know these decisions are tough, but they are vital to building a sustainable and competitive future,” the statement read, expressing confidence in its long-term vision.