Manchester United spent €10.3m sacking staff in Jim Ratcliffe cost-cutting drive

Alex Ferguson stepped away from a reported £2million-a-year ambassador role with Manchester United at the end of the season as part of a club cost-cutting exercise. Pic credit: Nick Potts/PA Wire.

Manchester United spent €10m on redundancies in the first quarter of its financial year due to Jim Ratcliffe’s drive to reduce the workforce from around 1,000 by 250, the club’s latest accounts show.

Ratcliffe, the largest minority shareholder, began pruning the 250 jobs in July, a decision aimed at cutting United costs.

Most of those left in the summer or autumn. The first quarter results for the period ending 30 September 2024 may also take in related fees for auditors and other payments.

A statement in the accounts said: “Exceptional items for the quarter were a cost of £8.6m (€10.3m). This comprises costs incurred in relation to the restructuring of the Group’s operations, including the redundancy scheme implemented in the first quarter of financial year 2025. Exceptional items in the prior year quarter were £nil.”

United’s total debt is now £714m due to non-current borrowings of £481.7m and current borrowings of £232.3m.

The latter has risen £36.5m from June’s end-of-year accounts because of the club’s revolving credit facility, which offers access to short-term finance and, it is understood, fluctuates during the year.

United’s summer transfer spend of approximately £200m on Joshua Zirkzee, Leny Yoro, Matthijs de Ligt, Noussair Mazraoui and Manuel Ugarte will represent a sizeable proportion of the £195.8m rise.

The figure is expected to be reduced by a significant amount during the season due to sponsorship income, season tickets, broadcast revenues and others.

Guardian