‘A decade of mismanagement’ – Man Utd reveal revenue drop

A Manchester United supporters ‘ group says fans must not “pay the price” for the club’s financial “mismanagement” after the Red Devils announced revenues decreased by 12% in the last financial quarter.

The club announced on Wednesday that revenues had decreased to £198.7 million for the final three months of 2024 from £225.8 million for the same period twelve months earlier.

After spending £14.5 million on the sackings of Erik ten Hag and his coaching staff, including the £4.1 million expense of hiring and firing former sporting director Dan Ashworth within five months, the club made an operating profit of £3.1 million, down from £27.5 million over the same period in 2023.

The club made over 200 redundancies and increased matchday ticket prices to £66 per game, leaving no concessions for children or retirees as a result of the announcement.

In a letter to supporters in January, United stated that making “difficult” decisions would be necessary because the club was “close” to breaking Premier League profit and sustainability regulations.

The club did not deny reports that it is seeking to make further redundancies when approached by BBC Sport earlier this month.

United anticipates that the restructuring decisions will result in savings of between £30 million and £40 million.

Fans should not be paying the price for a problem that begins with our crippling debt interest payments and is compounded by mismanagement, according to Manchester United Supporters’ Trust in a statement.

According to Kieran Maguire, a specialist in football finance, United has already paid more than £1 billion in interest on the debt used to finance the 2005 acquisition of the Glazer family.

He claimed that Old Trafford should be focused on bringing Champions League football back after winning the FA Cup last year, which resulted in Europa League football.

According to Maguire, “a successful Champions League season can be worth far more than £100 million.” By the time you combine gate receipts, sponsor bonuses and the prize money available, the numbers involved are eye-watering.

The decline in broadcast revenues was the primary cause of United’s revenue decline.

The men’s team playing in the Europa League, according to the club, was United’s reason for this, according to the club.

United are currently ranked 15th in the Premier League, just ahead of Ruben Amorim, who has advanced to the Europa League knockout stages as well as the fifth round of the FA Cup.

Overall, the club made a quarterly operating profit of £3.1m, which was down from £27.5m over the same period in 2023, but United said club debt increased from £506.6m to £515.7m because of” unfavourable “exchange rate changes.

A £14.5 million “exceptional item” figure is included in the results, which includes the £4.1 million that was spent on the removal of Ashworth in December and the £10.4 million that was spent on sacking Ten Hag and his coaching staff in October.

Commercial revenue was up 18.5% from £71.8m to £85.1m, as a result of the front-of-shirt partnership with Snapdragon.

” We recognise the challenges in improving our men’s team’s league position and we are all working hard, collectively, to achieve that, “said Omar Berrada, United’s chief executive officer.

Berrada said the club’s redevelopment of the training ground was” on track”.

In United’s most recent financial results, Amorim and his staff’s £11 million hiring costs are not specifically mentioned.

United sources say that cost is being spread over their two-and-a-half-year contracts.

While he was under contract and the 2024-2005 season in full swing, the club paid the sum to allow Amorim to release from his contract with Portuguese outfit Sporting.

Sir Jim Ratcliffe, United’s co-owner, has a 28.94% stake in the club through his Ineos group.

The British billionaire has attempted to reduce costs by assisting the club in adhering to sustainability and profit rules.

Under profit and sustainability rules (PSR), clubs can record a maximum loss of £105m over a three-year reporting period.

United’s losses over the past five years total over £370m, but some costs – such as infrastructure costs, youth development and community spending – do not count towards PSR calculations.

Since Ratcliffe’s investment was announced in December 2023, United have made about 250 staff redundant.

In the January transfer window, the club signed two men’s teams, with Ayden Heaven joining from Arsenal and Patrick Dorgu joining from Lecce.

Marcus Rashford, Antony and Tyrell Malacia all left United on loan.