Manchester United spent a total of £14.5 million ($18.3 million) to part ways with manager Erik ten Hag, sporting director Dan Ashworth, and several other football staff, as revealed in the club’s latest financial report on Wednesday.
The 20-time English champions currently find themselves struggling in 15th place in the Premier League after suffering a narrow 1-0 defeat to Tottenham on Sunday.
Only West Ham and Wolves separate them from the relegation zone.
United had hoped for a turnaround in fortunes under Rúben Amorim, but the Portuguese manager has yet to make a significant impact since replacing Ten Hag, who was dismissed in October, just 116 days after the club activated an extension in his contract until 2026.
The decision to part ways with Ten Hag and his staff, spearheaded by minority owner Jim Ratcliffe’s INEOS group, proved costly.
The financial blow was further intensified by the swift departure of Ashworth.
The former Newcastle sporting director officially took up his role at United on July 1 after lengthy negotiations but departed on December 8.
United’s financial accounts for the quarter ending December 31 categorized these costs as “exceptional items.”
“Exceptional items for the quarter amounted to £14.5 million,” the club stated in a press release.
“This relates to costs associated with the departure of former men’s first-team manager Erik ten Hag and various members of the football staff.”
Breakdowns of the figures show that Ten Hag and his staff received £10.4 million in compensation, while Ashworth’s exit accounted for approximately £4.1 million.
The financial strain on the club was further reflected in an overall loss of £27.7 million for the quarter.
Broadcasting revenue also took a major hit, dropping by 42 percent to £61.6 million due to United’s participation in the Europa League instead of the more lucrative Champions League.
With Champions League qualification next season looking unlikely unless United win the Europa League, future revenues could take another hit.
This financial reality is expected to impact Amorim’s summer transfer plans, with the manager recently admitting that player sales will be necessary before new signings can be made.
Since Jim Ratcliffe’s investment in the club, United have enforced cost-cutting measures, including over 200 job cuts, despite facing strong opposition.
Ticket prices have also increased, leading to frustration among fans. Even club legend Sir Alex Ferguson was affected, with his reported £2 million-a-year ambassadorial role being scrapped.
United CEO, Omar Berrada, acknowledged the difficult situation, stating:
“We recognise the challenges in improving our men’s team’s league position, and we are all working hard, collectively, to achieve that.”
