Manchester United submits the accounts of its UK-registered subsidiary, Red Football Ltd (RFL), for Profit and Sustainability Rules (PSR) assessments, rather than the Cayman Islands-based Manchester United plc, resulting in a significantly lower pre-tax loss figure. This discrepancy is due to RFL's accounts excluding exceptional costs, such as Sir Jim Ratcliffe's minority stake acquisition costs and other currency-related financial costs, which were incurred at the plc level but not passed down to the subsidiary. This strategic reporting has provided the club with more financial headroom for spending and has influenced how its PSR compliance is perceived.
***C&P from AI
It stinks doesn't it?