Manchester United’s Revenue Declines: A Decade of Poor Management?
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Image caption: Sir Jim Ratcliffe, co-owner of Manchester United, holds a significant stake in the club at 28.94% through his Ineos group.
Published on February 19, 2025 | 1012 Comments
A supporters’ group associated with Manchester United has expressed concerns that fans should not bear the brunt of the club’s financial difficulties. The Red Devils announced a decline in revenue by 12% for their final quarter of fiscal year 2024, totaling 198.7 million compared to 225.8 million in the same period a year ago.
Although Manchester United reported an operating profit of 3.1 million this quarter, down from 27.5 million last year, significant expenses were incurred due to managerial changes. The club spent nearly 14.5 million on dismissing Erik ten Hag and his coaching staff, including a substantial 4.1 million for the brief hiring and subsequent dismissal of former sporting director Dan Ashworth within five months.
Against this backdrop, Manchester United has implemented over 200 redundancies and increased matchday ticket prices to 66 per game with no exceptions for children or pensioners. The club had previously informed supporters about the necessity of making tough decisions as it approached a potential breach of Premier League profit and sustainability rules.
Manchester United Supporters’ Trust stated, “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. It’s time to freeze ticket prices and allow everyone C players, management, owners, and fans C to unite behind Manchester United and restore this club to its rightful standing.”
The second quarter results revealed broadcast revenue dropping from 106.4 million to 61.6 million due primarily to the team competing in the Europa League instead of the Champions League last season. The club’s debt rose slightly, increasing from 506.6 million to 515.7 million, partly owing to unfavorable exchange rate fluctuations.
Football finance expert Kieran Maguire highlighted that Manchester United faces a challenging path towards regaining its league position and stressed the importance of focusing on improving their performance in order to comply with financial regulations.
“We recognize the challenges involved in enhancing our men’s teams league standing, and we are all committed to working collectively toward this goal,” said Omar Berrada, United’s chief executive officer. He also noted that efforts were ongoing for the redevelopment of the training ground.
With Sir Jim Ratcliffe holding a substantial stake in Manchester United through his Ineos group, various cost-cutting measures have been implemented to assist the club with adhering to profit and sustainability rules. Despite these measures, further redundancies may be on the horizon as Ratcliffe explores additional ways to improve financial stability.
However, it’s worth noting that while such decisions are often unpopular among fans, they represent a necessary step in ensuring the long-term viability of Manchester United both financially and competitively.
