Manchester United’s sweeping job cuts have cost more than £36 million in compensation, but helped slash losses and deliver record revenues, casting doubt on Sir Jim Ratcliffe’s claim that the club was on the brink of financial collapse.
The restructuring, which saw around 400 jobs axed and included pay-offs for sacked manager Erik ten Hag and sporting director Dan Ashworth, reduced net losses to £33m in the 12 months to June 30 — down from £113.2m the year before. The headcount has fallen from 1,122 to around 700.
The overhaul came after a disastrous season on the pitch, which brought United’s lowest league finish in 51 years and no Champions League football. Broadcast revenues dropped by almost £50m. Yet commercial income soared 10% to a record high, boosted by the lucrative Snapdragon shirt sponsorship and a new e-commerce partnership with SCAYLE. Matchday takings also jumped nearly 17%, while wages fell £51.5m to £313.2m after players took a 25% cut in the absence of Champions League bonuses.
Despite the turbulence, United posted revenues of £666.5m — the biggest in their history. Analysts say this undercuts Ratcliffe’s dramatic warning earlier this year that the club could go “bust by Christmas 2025”.
Although the balance sheet remains stretched by ongoing transfer spending and another season outside the Champions League, United’s ability to generate cash is formidable. The club’s EBITDA — earnings before interest, taxes, depreciation and amortisation — reached £182.8m and is forecast to remain between £180m and £200m this season, the highest of any European club since the pandemic.
For investors and lenders, EBITDA is a key gauge of financial strength. By that measure, United’s performance suggests resilience, not impending ruin. While Ratcliffe’s cuts have been painful, the club’s cash-generating power continues to set it apart in European football, even in difficult times.
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Sir Jim Ratcliffe’s ‘bust by Christmas’ warning questioned after £36m jobs cull at Manchester United