In a stark revelation, Manchester United’s latest financial results lay bare the true cost of their tumultuous season, headlined by the sacking of manager Erik ten Hag and sporting director Dan Ashworth. The club’s accounts, submitted to the New York Stock Exchange, paint a picture of a footballing giant grappling with the consequences of underperformance both on and off the pitch.
Ten Hag and Ashworth Payouts Exceed £14 Million
The decision to extend Ten Hag’s contract until 2026, mere months before his dismissal, has proven to be a costly one for the Red Devils. The Dutchman, along with his coaching staff and Ashworth, received a staggering £14.5 million in compensation following their departures. This figure, listed under “Exceptional Items” in the accounts, underscores the financial ramifications of United’s managerial merry-go-round.
Ten Hag’s tenure, which began with promise after an FA Cup triumph over Manchester City, ultimately unraveled as United recorded their worst-ever Premier League finish. The decision to reward him with a new deal, rather than see out his existing contract, has come back to haunt the club’s coffers.
Ashworth’s Brief Stint Proves Expensive
Dan Ashworth’s five-month spell as United’s sporting director also ended abruptly in December, with the club reaching a multi-million-pound settlement with his former employer, Newcastle United. The brevity of his stay, coupled with the compensation paid out, raises questions about the club’s long-term strategy and recruitment processes.
Broadcasting Revenue Plummets as Europa League Takes Its Toll
While commercial revenue saw a modest £3.8 million uptick thanks to a new shirt sponsorship deal with Qualcomm, it was the sharp decline in broadcasting revenue that truly underlined United’s on-field struggles. A 42.1% year-on-year drop, equating to a £44.8 million shortfall, can be attributed to the club’s participation in the Europa League rather than the lucrative Champions League.
We recognize the challenges in improving our men’s team’s league position and we are all working hard, collectively, to achieve that.
– Omar Berrada, Manchester United Chief Executive
The financial figures serve as a stark reminder of the importance of Champions League football to United’s bottom line. With the team currently languishing in 15th place in the Premier League, just three points above the relegation zone, the prospects of a swift return to Europe’s elite competition appear slim.
Cost-Cutting Measures and Future Focus
In response to these financial pressures, United have already implemented a series of cost-cutting measures, including over 200 redundancies since Sir Jim Ratcliffe’s INEOS group acquired a 27.7% minority share last February. Further cuts are expected as the club attempts to streamline operations and redirect resources towards on-field success.
Despite the concerning financial figures, chief executive Omar Berrada remains optimistic about the club’s future, citing progress in the Europa League and FA Cup as well as the ongoing redevelopment of the Carrington Training Complex and potential Old Trafford regeneration as reasons for hope. However, the road ahead remains challenging, with the club’s immediate focus on improving their precarious league position under new manager Ruben Amorim.
As Manchester United navigate this period of transition, both on and off the pitch, the true cost of their recent managerial missteps and the importance of a return to footballing success have never been more apparent. The coming months will be crucial in determining whether the club can rebound from these financial setbacks and reclaim their place among Europe’s elite.
