Manchester United Faces Financial Woes Amid Major Overhaul

Manchester United announced job cuts and ticket price increases amidst financial struggles. Under new leadership after Jim Ratcliffe’s acquisition of a 27.7% stake, the club is undergoing significant changes both on and off the pitch. Despite disruptions, management remains optimistic about the club’s long-term prospects.

Manchester United plunged deeper into financial troubles during the third quarter of a challenging season, announcing job cuts and a rise in ticket prices on Wednesday. The changes come after British billionaire Jim Ratcliffe, CEO of INEOS, acquired a 27.7% stake in the club earlier this year, taking charge of its football operations.

The 20-time English champions finished eighth in the Premier League, prompting a comprehensive review of club activities by its management and owners. Plans include cutting approximately 250 jobs and raising ticket prices by 5% for the next season.

While head coach Erik ten Hag will stay for the new season, the club has a new CEO, finance chief, sports director, and technical director, many of whom were recruited from rival teams to implement broad changes. Tim Fidler, Portfolio Manager at Ariel Investments, emphasized the transformative phase, expressing optimism about long-term prospects and future development of the Old Trafford stadium. Despite short-term disruptions, United will compete in the Europa League following their FA Cup win against Manchester City.

The Glazer family, who retain majority ownership, has faced criticism for lavish spending on players. In the third quarter, player and staff wages rose 7.3% to 91.2 million pounds, while club debt reached $650 million at the end of March. Sir Jim Ratcliffe has stressed a cautious approach to spending in the transfer window, seeking sustainable success. The club reported a net loss of 71.4 million pounds for the quarter, a stark contrast from the 5.6 million pounds loss a year earlier. Revenue for the year ending in June is projected at around 660 million pounds, with an adjusted core profit of 140 million pounds. New CEO Omar Berrada is set to join this weekend from City Football Group.

(With inputs from agencies.)