Man Utd's Financial Woes: Revenues Drop Amid Managerial Shake-Up and European Struggles

Manchester United's financial health has taken a significant hit, with revenues declining by 12% in the last financial quarter. This downturn is largely attributed to the costs associated with the dismissal of former manager Erik ten Hag and the club's participation in the Europa League rather than the more lucrative Champions League.

The club reported revenues of £198.7m for the final three months of 2024, a decrease from £225.8m in the previous year. Notably, broadcast revenues plummeted by 42%, from £106.4m to £61.6m. Despite these challenges, commercial revenues saw an 18.5% increase, reaching £85.1m, thanks to the front-of-shirt partnership with Snapdragon.

Manchester United's operating profit also fell sharply to £3.1m from £27.5m in the same period last year. The club's debt increased slightly to £515.7m, driven by unfavorable exchange rate changes. Special costs included a £14.5m exceptional item, covering the dismissal of Ten Hag and his coaching staff, and the departure of former sporting director Dan Ashworth.

Omar Berrada, the CEO, emphasized the collective effort to improve the team's league position and mentioned that the training ground redevelopment is progressing as planned. The club's financial struggles are compounded by its adherence to the Premier League's profit and sustainability rules, with potential breaches looming.

Under Sir Jim Ratcliffe's partial ownership, United has made structural changes, including staff redundancies and strategic signings during the January transfer window. However, these measures are yet to reflect positively in the financial outcomes, as the club continues to navigate its performance challenges in the Premier League and cup competitions.