Manchester United faced financial challenges in the third quarter of a challenging season, announcing job cuts and an increase in ticket prices.
The Premier League club, under new leadership following British billionaire Jim Ratcliffe’s acquisition of a significant stake in and control over football operations, has been undergoing significant restructuring.
Despite being a 20-time English champion, United finished a disappointing eighth in the Premier League, prompting a comprehensive review of the club’s operations by management and ownership.
United plans to implement a club-wide redundancy program affecting approximately 250 jobs, along with a planned 5% increase in ticket prices for the upcoming season.
Erik ten Hag remains in his role as head coach for the new season, while the club has introduced new executives, including a CEO, finance chief, sporting director, and technical director, recruited from rival clubs to drive organisational change.
“The club is undergoing a meaningful transition both on the pitch and off in the operations of the company, which should serve it well over the next few years,” said Tim Fidler, Portfolio Manager at Ariel Investments, the third-largest investor in the club’s publicly traded shares.
“Despite the disruption, we are optimistic that the club’s long-term prospects are in excellent health,” he added, saying plans to develop the Old Trafford stadium would be key.
Manchester United’s upcoming season will include participation in the Europa League following their FA Cup final victory over local rivals Manchester City in May.
Owned predominantly by the Glazer family, the club has faced criticism over the past decade for its lavish spending on players, from Argentine World Cup winner Angel Di Maria to Brazilian winger Antony.
During the third quarter, player and staff wages saw a notable 7.3% increase, reaching £91.2 million. As of the end of March, the club’s debt stood at $650 million.
The transfer window has been relatively quiet, with new owner Jim Ratcliffe emphasising a cautious approach to spending in pursuit of major trophies.
For the three months ending March 31st, Manchester United reported a net loss of £71.4 million ($91.4 million), a significant increase from a £5.6 million loss the previous year.
Projected annual revenue for the fiscal year ending June is around £660 million, with adjusted core profit expected to reach approximately £140 million, slightly below earlier anticipated levels.
Incoming CEO Omar Berrada, formerly with Manchester City’s parent company, City Football Group, is set to commence his role at United this weekend.