Manchester United have shelled out a whopping £8.6million to lay off 250 staff, as revealed in their latest quarterly financial report. The club, under the cost-cutting measures of co-owner Sir Jim Ratcliffe, embarked on a significant redundancy programme aimed at enhancing sustainability.
The Red Devils believe these job cuts will result in savings between £40m and £45m, with the first quarter's fiscal results revealing £8.6m as the cost of implementing this measure. This figure, labelled as 'exceptional costs', includes expenses related to restructuring United's operations, including the redundancy scheme rolled out in the first quarter of the financial year 2025.
In contrast, there were no 'exceptional costs' in the previous year. The club reported commercial revenues of £85.3m, a drop of £5.1m from the previous year's quarter, with sponsorship revenue standing at £51.8m, down by £4.4m.
This decrease is attributed to changes in sponsorship agreements and United playing three fewer matches on their pre-season tour compared to the previous year. Merchandising and retail revenue dipped by £700,000 to £33.5m, while broadcasting revenue for the quarter was £31.3m, a decrease of £8m.
This loss of revenue is primarily due to United's participation in the Europa League, as opposed to the Champions League the previous year. Matchday revenue for the quarter stood at £26.5m, a decrease of £900,000 over the previous quarter.
United CEO Omar Berrada has expressed his ambitions for the club, stating: "The season is now well underway for both our men’s and women’s team, and we are keen to ensure both are as competitive as possible."
He also shared his enthusiasm about new appointments and partnerships: "We are delighted to have appointed Ruben Amorim as head coach of our men’s team and remain committed to returning Manchester United to the top of domestic and European football."
Berrada highlighted the club's financial strategy and developments: "Our cost and headcount reductions remain on track, and we are pleased to have seen further commercial traction, and welcome new partner Heineken, through their Tiger brand."
He updated on infrastructure projects: "Our renovation of the Carrington Training Centre is progressing well, while the Old Trafford Regeneration Task Force continues its work."
Looking ahead, he noted: "Once it has delivered its recommendations, we will then take some time to digest them and evaluate all our options in the upcoming year."
The CEO acknowledged United's financial obligations: "United's overall debt currently stands at £714m, comprising non-current borrowings of £481.7m and current borrowings of £232.3m."
