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Big Costs from Managerial Changes
Manchester United is facing a hefty financial hit, with estimates suggesting they have incurred over £35 million in exceptional costs following the sacking of Erik ten Hag and the appointment of Ruben Amorim. This financial burden could significantly impact the club’s profit and sustainability ratio for the current season.
Ten Hag’s Departure: A Disappointing Start
Erik ten Hag’s tenure came to an end on 28 October after a string of poor performances left the team struggling in the Premier League. His replacement, Ruben Amorim, was announced just days later, on 1 November, with the club agreeing to pay Sporting Lisbon £9.25 million in compensation for the Portuguese manager.
Sixth Manager Since Ferguson
Amorim will officially take charge on 11 November, making him the sixth permanent manager since the legendary Sir Alex Ferguson retired in 2013. This frequent turnover highlights ongoing instability at Old Trafford.
Financial Implications for the Future
Former Manchester City financial adviser Stefan Borson has warned that this managerial change could have a dramatic effect on United’s financial outlook for the 2024-25 season. Last season, the club narrowly avoided breaching profit and sustainability regulations, and the new costs may push them over the edge.
PSR Limit in Jeopardy
Borson pointed out that the club’s financial situation is precarious, especially given their near miss with the profit and sustainability ratio last season. With the additional costs of around £35 million to £37.5 million, any buffer they had is quickly eroding, particularly if the team continues to perform poorly.
Challenges Ahead
As Premier League payments are tied to league position—approximately £3 million per place—Manchester United faces a challenging road ahead. With time still on their side, the club must navigate these financial hurdles while aiming to improve their standing on the pitch.
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