Manchester United has announced job losses and an increase in ticket prices as the Premier League club faces financial challenges in the third quarter of the year. Following the acquisition of a significant stake by British billionaire Jim Ratcliffe, the club has undergone various changes in its management and operations.
Despite finishing in eighth place in the Premier League last season, the club is taking steps to review and restructure its activities. Plans include cutting approximately 250 jobs through a redundancy program and implementing a 5% ticket price hike for the upcoming season.
While Erik ten Hag will continue as head coach, the club has welcomed new executives in key positions, including a new CEO, finance chief, sporting director, and technical director. This restructuring aims to drive positive change both on and off the pitch.
Investors like Ariel Investments express optimism about the club's future prospects, emphasizing the importance of ongoing developments, such as the planned renovation of the iconic Old Trafford stadium.
Manchester United's participation in the Europa League next season follows their FA Cup final victory over local rivals Manchester City. The club's financial performance has been scrutinized, with concerns raised over past lavish spending on players and escalating wages.
Debt levels remain a concern, standing at $650 million as of March. The club reported a significant net loss of £71.4 million for the quarter ending March 31, a stark contrast to the previous year's loss of £5.6 million.
Looking ahead, United anticipates annual revenue of approximately £660 million for the current fiscal year, with adjusted core profit expected to reach around £140 million. The club's new CEO, Omar Berrada, is set to join from the City Football Group, the parent company of Manchester City.
