Man Utd Finances: Profit Fall & INEOS Plan

Man Utd’s High Costs and Big Changes: What’s Going on Behind the Scenes?

Manchester United has recently revealed its latest financial report, and it’s clear that big changes at the club have come with a hefty price tag. Firing manager Erik ten Hag and sporting director Dan Ashworth, along with missing out on Champions League football, have put a strain on the club’s finances. Let’s break down what this all means for the future of United and its owners, INEOS and Sir Jim Ratcliffe.

Expensive Changes at the Top

One of the most significant costs for United this season was the sacking of Erik ten Hag and his team. After extending Ten Hag’s contract in the summer, the club let him go just nine games into the season. The payout for this decision? A whopping £10.4 million. On top of that, the dismissal of sporting director Dan Ashworth cost United an additional £4.1 million in severance and compensation. These moves raise questions about the club’s management and whether these decisions were carefully thought through.

The Impact of Missing the Champions League

Another blow to United’s finances has been their failure to qualify for the Champions League. This resulted in a major drop in TV revenue, which fell by 42%. The club’s operating profit also took a hit, plunging from £27.5 million to just £3 million. Kieran Maguire, a football finance expert, explains that this drop highlights just how crucial on-field success is for a club’s financial health.

The Cost of Change: What’s the Price Tag?

When you start making changes at the top, the costs quickly add up. In addition to the sacking of Ten Hag and Ashworth, United has also made moves behind the scenes, like hiring Ruben Amorim from Sporting. The deal, which reportedly cost £8.5 million, is spread out over his contract, which amounts to an annual £2.3 million. These kinds of decisions aren’t just costly but also raise concerns about how well the club is being run at the moment. Can United afford to keep making expensive changes?

INEOS Looks to Cut Costs

The club’s finances are also feeling the pressure from their owners, INEOS and Sir Jim Ratcliffe. United’s income has dropped by 12% overall, and INEOS is working hard to cut costs across its various ventures. The reduction in sponsorships is a key part of their strategy, including the potential early termination of their deal with Tottenham. Additionally, INEOS has canceled other sponsorships and is even facing legal action from New Zealand Rugby after ending their deal prematurely.

The company is also scaling back on investments in sports, including plans for their cycling team. With INEOS trimming costs across the board, Manchester United is clearly a central focus of these efforts.

What’s Next for Old Trafford?

Despite these financial challenges, there are still plans to improve United’s facilities. CEO Omar Berrada has confirmed that work is ongoing at the Carrington training ground, and discussions are underway about the future of Old Trafford. However, the extent of these upgrades depends on the club’s financial stability in the coming months.

Will Man Utd Recover?

So, where does all of this leave Manchester United? The costs of managerial changes, combined with lost revenue from missing the Champions League, have certainly put a strain on the club’s finances. With INEOS focusing on cost-cutting, it remains to be seen how much room there will be for future investments. Fans and financial analysts alike will be watching closely to see if United can get back on track, both on the pitch and off it.

What do you think about United’s financial challenges? Do you believe they’ll bounce back, or is the future looking uncertain? Share your thoughts below!