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Manchester United’s shocking financial situation has been laid bare after the club released its accounting records for the final three months of 2024, casting serious concerns over INEOS’ decision-making since assuming control at Old Trafford last year.
Sir Jim Ratcliffe was ratified as United’s new co-owner last February after his minority stake ownership bid was accepted by the Glazer family in December 2023.
The British billionaire was granted full authority over the football operation as part of the deal, entrusting power to his INEOS Sport team who wasted little time in launching a comprehensive overhaul of the executive structure at the club.
An Expensive New Structure
Omar Berrada was poached from local rivals Manchester City to become United’s new chief executive, while Dan Ashworth was finally able to swap St James’ Park for Old Trafford after a protracted pursuit to become the club’s sporting director.
Ashworth’s appointment cost United in the region of £5 million to secure the executive’s switch from Newcastle.
A comprehensive ‘end-of-season’ review was also conducted by INEOS to analyse why the 2023-24 campaign – the club’s worst in Premier League history – had proven so disastrous, with manager Erik ten Hag coming precariously close to being replaced as United considered a number of coaches to replace the Dutchman.
However, the review eventually concluded sticking with Ten Hag was the best option and the 55-year-old received a one-year contract extension.
Yet, less than six months later, both Ten Hag, as well as almost his entire coaching staff, and Ashworth were shown the exit door by INEOS with United languished in 13th in the table and struggling in the Europa League.
Today, the club’s financial records for this period were published, revealing the cost to dismiss both men and their staff amounted to £14.5 million – bringing the total to just under £20 million when the fee to hire Ashworth in the first place is included.
This exorbitant figure was spent at the same that INEOS have enacted a series of deeply unpopular cost-cutting measures at Old Trafford, including widespread redundancies for non-playing staff and a significant increase in ticket prices for matchday fans.
Ratcliffe has admitted the club’s new ownership structure will “make mistakes” as they seek to correct a decade of incompetence by the Glazer family.
But the contrast between ordinary people associated with United, be they fans or long-standing staff members, being forced to front the costs of this and the expensive pay-outs for those figures responsible for the team’s dismal form is an unjustifiable one.
The Club’s Precarious Financial Situation
The club’s release further revealed the fraught financial situation at Old Trafford.
United’s total revenues “declined by 12%” in this quarter, primarily due to a lack of Champions League football – which is almost certainly set to be replicated next season, casting further doubts over the club’s ability to overhaul the first-team squad in the summer transfer window.
🚨 Manchester United confirm it cost £14.5m to sack Erik ten Hag and pay off Dan Ashworth (£4.1m).
Second-quarter results for 2025 also reveal:
– Total revenues declined 12% primarily due to lack of #UCL broadcast revenue.
– Club achieved Commercial revenue growth of 18.5%… pic.twitter.com/qsnQALCB1p— Ben Jacobs (@JacobsBen) February 19, 2025
Tweet: “Manchester United confirm it cost £14.5m to sack Erik ten Hag and pay off Dan Ashworth (£4.1m).
Second-quarter results for 2025 also reveal:
– Total revenues declined 12% primarily due to lack of #UCL broadcast revenue.
– Club achieved Commercial revenue growth of 18.5% during the quarter to £85.1 million, driven by the front-of-shirt partnership with Snapdragon.
– Club recorded an operating profit of £3.1 million in the quarter, versus £27.5 million in 2Q24.
– For Fiscal 2025, club reiterates its prior guidance of total revenues of £650 million to £670 million and now expects adjusted EBITDA guidance to be at the high end of its previously issued range of £145 million to £160 million.”
Furthermore, United recorded an “operating profit” of £3.1 million in the three-month period, compared to £27.5 million in the second quarter of 2024.
However, there was a significant commercial revenue growth of 18.5% in this period, primarily driven by a sponsorship deal with Snapdragon, reinforcing the fact that United’s global popularity is still a major strength for the club.
The Club’s Statement
An accompanying statement by Berrada was released with the accounting records, revealing INEOS “recognise the challenges” in improving Ruben Amorim team’s performances on the pitch while also reiterating the commitment to continue overhauling the club’s infrastructure.
“We recognise the challenges in improving our men’s team’s league position and we are all working hard, collectively, to achieve that. At the same time, we are pleased to have progressed to the knock-out phase of the UEFA Europa League and the 5th Round of the FA Cup. Meanwhile, our women’s team is currently placed second in the Women’s Super League, and has reached the Quarter Finals of the FA Cup.
“Our redevelopment of the Carrington Training Complex remains on track. We continue to work towards a decision on the future of Old Trafford as part of a wider regeneration programme, which has now attracted UK Government support. This follows the work of the Old Trafford Regeneration Task Force in demonstrating the significant economic potential of a revitalised area around a future stadium project.”
This commitment to projects off the pitch will do little to improve the fanbase’s assessment of United’s new leaders if it is not accompanied by a significant improvement to the team’s fortunes on it.
The fact that two of the most important decisions in INEOS’ first year at the helm – to extend Ten Hag’s contract and recruit Ashworth, before dismissing both with costly compensation – have been paid, in part, by the club’s fanbase and staff body will only deepen this growing resentment.
Featured image Justin Setterfield via Getty Images
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2025-02-19 13:35:49
