Manchester United have successfully cut over £10 million from their wage bill in the first quarter of the 2024-25 financial year, providing a much-needed cushion amid a challenging financial period.
The club’s latest financial report, ending 30 September, revealed a notable decline in revenue across multiple streams compared to the same quarter last year. While revenue fell to £143.1 million from the £157.1 million reported in 2023, the wage reduction highlights United’s strategic efforts to stabilize their finances amid the absence of Champions League football.
The sharpest revenue drop came from broadcasting, where the club pulled in £31.3 million, a significant fall from the previous year’s £39.3 million. The absence from Europe’s top competition has undoubtedly left a noticeable dent in the club’s financials, with commercial income also dipping to £85.3 million from £90.4 million. Meanwhile, matchday revenue saw a slight decrease, sliding to £26.5 million from £27.4 million—a reflection of reduced fan engagement and fewer marquee fixtures at Old Trafford.
However, the wage bill reduction from £90.3 million to £80.2 million—a decrease of 11.2%—demonstrates a silver lining. Club executives attribute the decrease primarily to a reshuffling of the first-team squad, with several high-profile exits during the summer transfer window. Scott McTominay, Mason Greenwood, Hannibal Mejbri, and Aaron Wan-Bissaka were among the notable names sold, contributing significantly to the £100 million generated in player sales.
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In addition to sales, the departures of Raphael Varane, Anthony Martial, and Brandon Williams following the expiration of their contracts, alongside the loan move of Jadon Sancho to Chelsea, further alleviated the wage burden. Sofyan Amrabat’s temporary stint at Old Trafford also ended without the club opting for a permanent deal, adding another layer of financial flexibility.
Despite these cost-saving measures, the Red Devils faced an exceptional cost of £8.6 million during the quarter, primarily linked to the restructuring of the club’s operations. This included a redundancy scheme aimed at streamlining the organization, further highlighting the financial challenges the club has faced without Champions League revenue.
A significant development that added to United’s expenditure was the managerial transition from Erik ten Hag to Ruben Amorim. The club shelled out £10.4 million to terminate Ten Hag’s contract and those of his backroom staff, while Sporting Lisbon received £11 million in compensation for releasing Amorim and his team. The shift in managerial strategy underscores United’s ambition to reset both on and off the pitch, even if it comes at a considerable cost.
The decision to part ways with Ten Hag, following a turbulent period, and bring in Amorim reflects the club’s long-term vision to revitalize its tactical and financial blueprint. Finance expert Stefan Borson suggested that United’s financial position remains precarious, with the club approaching the Premier League’s profit and sustainability (PSR) limit. The combination of managerial changes, squad reshuffling, and the lack of Champions League football has put pressure on the club to navigate a narrow financial path.
Despite posting a £6.9 million operating loss for the first quarter, Manchester United remains optimistic about the future. Projections for the full 2024-25 season indicate that the club could generate between £650 million and £670 million in revenue, a figure that would keep them in line with last year’s record-breaking £661.8 million. These estimates reflect a cautious optimism, with the club banking on a resurgence in form under Amorim and the eventual return to Europe’s elite competition.
Ruben Amorim’s early tenure has already sparked intrigue, with reports indicating that the Portuguese tactician is reshaping the squad and implementing a more dynamic style of play. One of his first major decisions involved forward Joshua Zirkzee, highlighting Amorim’s commitment to building a youthful, energetic team capable of competing at the highest level.
Looking ahead, United’s financial health remains closely tied to their on-field success. A strong domestic campaign and a return to Champions League football are critical not only for restoring Old Trafford’s glory but also for stabilizing the club’s financial foundation. The pressure is now on Ruben Amorim to deliver results that align with the club’s ambitions, both competitively and financially.
For Manchester United, the next few months will be pivotal in determining whether they can navigate the challenges of a transitional season while laying the groundwork for sustained success. With a restructured squad, a new managerial approach, and a focus on fiscal responsibility, the Red Devils aim to turn the page and embark on a new era—one that balances financial prudence with competitive ambition.