Ruben Amorim ‘switch funds hit’ as Man Utd submit large loss after sacking 250 workers

On Nov 26, 2024

Manchester United spent almost £9m on sacking 250 staff, the club’s financial figures have revealed.

The fallen Premier League giants have posted a loss of close to £7m for the first quarter of the year – with the stark figures emphasising how much new boss Ruben Amorim may be restricted in the transfer market.

Under co-owner Sir Jim Ratcliffe‘s cost-cutting measures, the club made a raft of employees redundant in a bid to streamline the business. The club believe the job cuts will save between £40m and £45m in the long term.

But the quarterly results have shown that it cost United £8.6m to implement the cost-cutting measures. The figure – referred to as ‘exceptional costs’ – comprises costs incurred in relation to the restructuring of United’s operations.

This includes the redundancy scheme implemented in the first quarter of the financial year 2025. The previous year, there were no ‘exceptional costs’ whatsoever.

British INEOS Group chairman and minority owner of Manchester United Jim Ratcliffe has overseen a swathe of budget cuts

United announced commercial revenues of £85.3m, down £5.1m on the prior year quarter, with sponsorship revenue £51.8m, a decrease of £4.4m. That decrease was due to changes in sponsorship agreements, and United playing three fewer matches on their pre-season tour compared to the previous year.

Merchandising and retail revenue was down £700,000 to £33.5m, while broadcasting revenue for the quarter was £31.3m, a decrease of £8m. That loss of revenue was primarily down to United competing in the Europa League, compared to the Champions League the previous year. Matchday revenue for the quarter was £26.5m, a decrease of £900,000 over the previous quarter.

Manchester United's squad is in need of an overhaul but funds may not be available to new manager Ruben Amorim — Manchester United’s squad is in need of an overhaul but funds may not be available to new manager Ruben Amorim

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United CEO Omar Berrada said: “The season is now well underway for both our men’s and women’s team, and we are keen to ensure both are as competitive as possible. We are delighted to have appointed Ruben Amorim as head coach of our men’s team and remain committed to returning Manchester United to the top of domestic and European football.

“Our cost and headcount reductions remain on track, and we are pleased to have seen further commercial traction. Our renovation of the Carrington Training Centre is progressing well, while the Old Trafford Regeneration Task Force continues its work.

“Once it has delivered its recommendations, we will then take some time to digest them and evaluate all our options in the upcoming year.”

United’s overall debt currently stands at £714m, which is made up of non-current borrowings of £481.7m and current borrowings of £232.3m.