A Manchester United supporters’ organisation has voiced strong opposition to fans bearing the financial burden resulting from what they describe as long-standing mismanagement at the club, following a decline in revenue.
The iconic football team disclosed a 12% reduction in earnings for the final quarter of 2024, amounting to £198.7 million compared to £225.8 million for the corresponding period in the previous year.
Despite generating an operating profit of £3.1 million during this period, which marks a sharp decline from £27.5 million in 2023, Manchester United reported considerable expenses, including £14.5 million on severance for former manager Erik ten Hag, his coaching team, and the ex-sporting director Dan Ashworth.
This financial revelation coincides with the club’s decision to implement over 200 layoffs and increase matchday ticket prices to £66, offering no reduced rates for children or senior citizens.
In a bid to address breaches of the Premier League‘s financial sustainability rules, the club informed supporters in January of the need for tough measures.
The Manchester United Supporters’ Trust has reacted by demanding a halt to ticket price rises, urging a collective effort to rejuvenate the club’s fortunes.
The primary factor behind the downturn in revenue was identified as a decrease in broadcasting income, attributed to the team’s participation in the Europa League rather than the Champions League.
Under the guidance of new coach Ruben Amorim, the team currently ranks 15th in the Premier League, though it has progressed to the knockout stages of the Europa League and the fifth round of the FA Cup.
Amid these financial challenges, United has seen its debt slightly increase from £506.6 million to £515.7 million, a change blamed on adverse exchange rates.
The financial statement also includes a £14.5 million cost related to management changes, and a notable 18.5% boost in commercial revenues due to a new sponsorship deal.
CEO Omar Berrada acknowledged the struggles faced in improving the team’s league performance, highlighting concerted efforts to overcome these. The redevelopment of United’s training facilities is reportedly progressing well.
Despite the financial turbulence, United has invested in new talent during the January transfer window and has embarked on a cost-reduction strategy, influenced by co-owner Sir Jim Ratcliffe’s directives to align with league financial regulations.
These restructuring efforts are anticipated to save between £30m and £40m, as the club continues to adjust its operations amidst ongoing financial scrutiny.
