Manchester United's financial results have revealed a significant downturn in revenue, with profits being heavily impacted by costly managerial changes and mounting debt concerns. The Premier League club reported a 12% decrease in revenues to £198.7m for the final quarter of 2024, compared to £225.8m in the same period the previous year.
The most striking aspect of the financial report shows the club spent £14.5m on severance packages, including £10.4m for Erik ten Hag and his coaching staff's dismissal in October, and an additional £4.1m related to former sporting director Dan Ashworth's brief five-month tenure.
Operating profit saw a dramatic 88.7% decline, falling to £3.1m from £27.5m in the corresponding period of 2023. The club's debt has also increased from £506.6m to £515.7m, attributed to unfavorable exchange rate fluctuations.
The Manchester United Supporters' Trust has expressed concern about these financial developments, stating that "fans should not pay the price for a problem that starts with our crippling debt interest payments and is exacerbated by a decade or more of mismanagement." This comes as the club has implemented controversial measures, including raising matchday ticket prices to £66 with no concessions for children or pensioners, and making over 200 redundancies.
Football finance expert Kieran Maguire highlighted that United have now paid more than £1bn in interest repayments on the debt used to finance the 2005 Glazer family takeover. He emphasized the importance of qualifying for the Champions League, noting that "a good season in the Champions League can be worth far in excess of £100m" when combining gate receipts, sponsor bonuses, and prize money.
The financial strain is particularly evident in the club's broadcast revenue, which fell by 42% from £106.4m to £61.6m, primarily due to participation in the Europa League instead of the Champions League. However, there was a positive note in commercial revenue, which increased by 18.5% to £85.1m, boosted by the new Snapdragon shirt sponsorship deal.
Under new co-owner Sir Jim Ratcliffe's Ineos group, which holds a 28.94% stake, the club has implemented cost-cutting measures to comply with Premier League profit and sustainability rules. These rules permit a maximum loss of £105m over a three-year period, while United's losses over the past five years exceed £370m.
Current CEO Omar Berrada acknowledged the challenges, stating, "We recognise the challenges in improving our men's team's league position and we are all working hard, collectively, to achieve that." The club, now led by Ruben Amorim, sits 15th in the Premier League but remains active in both the Europa League and FA Cup competitions.
The financial results do not include January transfer window activity, which saw the arrivals of Patrick Dorgu and Ayden Heaven, along with the loan departures of Marcus Rashford, Antony, and Tyrell Malacia. The £11m cost of appointing Amorim and his staff is being spread across their two-and-a-half-year contracts, according to club sources.
