Club recorded 5 consecutive years of annual losses; 250 employees were dismissed in July 2024
Manchester United will have a new round of layoffs that will affect more than 100 Old Trafford employees. The measure is part of the restructuring process that began after Sir Jim Ratcliffe’s minority investment in the club, completed in February 2024. Since then, several changes have been implemented to adjust the club’s finances, which remains under major Glazer family control. The information was released by the newspaper
The new reduction comes after the resignation of 250 employees in July 2024. The club faces financial difficulties, recording 5 consecutive years of annual losses, including a net loss of US $ 139.7 million in the 2023-2024 season. The “correct sizing” strategy adopted by the board seeks cost cuts of 40 to 45 million pounds, with an implementation cost of £ 10 million.
The performance of the men’s team at Premier League also impacts the club’s finances. Manchester United ranks 13th in the championship, compromising the qualification for UEFA Champions League, which can reduce revenues, including contract payments with Adidas.
In addition to layoffs, the club faces additional costs resulting from management decisions, such as the exchange of the technical team, including the departure of Erik Ten Hag and the arrival of Ruben Amorim, as well as the departure of Dan Ashworth. The new round of Cortes, communicated to the team in early December 2024, can reach the football department, which had a reduced impact on previous layoffs.
The United board has taken additional measures to reduce expenses such as cuts in benefits and adjustments to the operating budget. There were also increases in ticket prices, eliminating concessions for children and retirees in specific sectors. Administration justifies these changes as necessary to ensure the club’s financial sustainability.
