Man Utd's £1bn nightmare, Champions League blow and vital INEOS cash injection

The cost of Erik ten Hag’s sacking in October is the headline figure in Manchester United's latest financial results.

INEOS have forked out £14.5m in compensation after performing an embarrassing U-turn on Ten Hag, his backroom staff and, separately, short-lived transfer chief Dan Ashworth.

But there are several other notable numbers and issues in the quarterly figures published on Wednesday morning by the club - including the true cost of being out of the Champions League and remarks on the future of Old Trafford.

Here are the big takeaways for a club that remains in a difficult place both on and off the pitch.

The accounts confirm that United’s decision to award the Dutch head coach a new contract in the summer, having all but decided to sack him, only to then get rid of him 116 days later following an alarming run of results cost £10.4m.

And that means the pay-off for Ashworth, who lasted only five months as sporting director, came in at £4.1m.

“Exceptional items for the quarter were a cost of £14.5 million,” the corporate release from the club said. “This relates to costs associated with the departure of former men’s first team manager Erik ten Hag and various members of football staff.”

United’s costly absence from the Champions League has also been laid bare in the figures.

According to the second quarter results, revenues fell by 12 per cent compared to the same period last year, largely due to the club’s reduced broadcasting income from not being in Europe’s big competition.

“Broadcasting revenue for the quarter was £61.6 million, a decrease of £44.8 million, or 42.1%, over the prior year quarter,” the statement said.

Unless United, who are an astonishing 15th in the Premier League, win the Europa League that shortfall will be felt again next season.

Twenty years on from the Glazers’ leveraged buyout of the club, the cumulative interest has now topped more than £1bn with the figures showing £18.8m in debt interest payments were made over six months.

Overall, the club made an operating profit of £3.1m for the quarter – down from £27.5m over the same period in 2023 – but United said club debt increased from £506.6m to £515.7m owing to "unfavourable" exchange rate changes.

Manchester United Supporters Trust said in a statement that “without the INEOS cash injection of £80m, the club would be down to £15m cash” as they again protested against plans to ramp up ticket prices.

The club’s statement added that it reiterates its “previous revenue guidance of £650m to £670m (for the year) and now expects adjusted EBITDA guidance to be at the high end of its previously issued range of £145m to £160m.

“The club remains committed to, and in compliance with, both the Premier League’s Profit and Sustainability Rules and UEFA’s Financial Fair Play Regulations.”

The figures may be bleak, the team’s position in the league alarming but chief executive Omar Berrada was keen to spin the positives in his remarks – and there was no mention of plans to enforce further redundancies across the business.

United are expected to trim the workforce by another 100 members of staff this year following significant cuts in 2024, with the savings projected to be worth between £30m and £40m.

But Berrada said: “We recognise the challenges in improving our men’s team’s league position and we are all working hard, collectively, to achieve that. At the same time, we are pleased to have progressed to the knock-out phase of the UEFA Europa League and the 5th Round of the FA Cup.

“Meanwhile, our women’s team is currently placed second in the Women’s Super League, and has reached the Quarter Finals of the FA Cup.”

Berrada went on to say that the club is continuing “to work towards a decision on the future of Old Trafford as part of a wider regeneration programme, which has now attracted UK Government support.”

United have said that several options remain under consideration but, according to Berrada, the task force convened has demonstrated the “significant economic potential of a revitalised area around a future stadium project.”

He added: “Our redevelopment of the Carrington Training Complex remains on track.”