Skip to main content

New brooms start sweeping up at United

Manchester United already seem to be getting their mojo back if yesterday’s win against Everton is anything to go by.   The gloomy Ten Hag has been replaced by a coach with passion and new ideas.

As forklift trucks ferried building materials across Manchester United’s Carrington training centre this week as part of a £50mn upgrade, another reboot got under way at one of the world’s most famous sports teams. On Thursday Ruben Amorim made his debut at Old Trafford as United’s new head coach, the latest move by Sir Jim Ratcliffe to restore the club’s fortunes since his company Ineos acquired a 27 per cent stake in February.

 In the months that have followed, United have cut a quarter of the club’s staff, while Ratcliffe has appointed his own people to all the top executive positions. Amorim’s arrival is meant to be the final piece in the puzzle. While the Glazer family still owns a controlling stake in United, this is now Ratcliffe’s operation.   “We have to improve as a club,” the 39-year-old Portuguese coach said during his first press conference. “We will try to do it our way. The Ineos way, and my way.”

Other key arrivals this year include chief executive Omar Berrada, who joined from crosstown rivals Manchester City, and chief financial officer Roger Bell, a veteran of Ratcliffe’s Ineos chemicals empire. Sporting director Dan Ashworth was brought in from Newcastle United, while former Paris Saint-Germain and Juventus executive Jean-Claude Blanc, who heads up Ineos Sport, now sits on the United board and will represent the club at meetings of the European Club Association. Joel and Avram Glazer remain executive co-chairmen, but have taken a step back from day-to-day running of the club.  

Ratcliffe’s impact was evident in the club’s quarterly accounts released this week. In the three months ending September 30, United booked costs of £8.6mn related to redundancy packages as it reduced headcount by about 250 people. The club has also recently ordered staff back to the office five days a week and cut travel budgets. 

The decision to sack Dutch head coach Erik ten Hag just three months after extending his contract and bring in Amorim will lead to more than £21mn of additional costs in future accounts, the club said this week.  Berrada said in the earnings release that cost and headcount reductions “remain on track”, and that the club leadership was “committed to returning Manchester United to the top of domestic and European football”.

Financial hits

United reported an operating loss in the period of £6.9mn, as a lack of Uefa Champions League football and a shorter pre-season tour of the US resulted in an 8.9 per cent drop in revenue to £143.1mn. The club’s New York-listed shares currently trade at about $17, down 15 per cent since the start of the year and well below the $33 paid by Ratcliffe as part of his $1.3bn stake acquisition agreed on Christmas Eve last year. That deal valued United at $6.3bn including debt, a record not just in football but across global sport. 

United spent more than €200mn on new recruits this summer: the third highest in European football. In the past 10 years, United’s net outlay on new players stands at €1.35bn, according to Transfermarkt, the highest in the game and €300mn more than PSG, football’s second biggest spender.

Yet performances on the pitch have not lived up to expectations. United have not won the Premier League since 2013, when legendary manager Sir Alex Ferguson retired. Amorim is the sixth coach to be given the task of bringing back the glory days. Not all the changes introduced by Ratcliffe and his Ineos lieutenants have been well received. One fan group said this week that it would organise protests against a move to increase ticket prices and remove concessions for children and pensioners.

Another group, the Manchester United Supporters Trust, described the decision as “offensive” and called on United’s shareholders to put in more of their own money if extra funds were needed. The club believes the changes will only be felt by a tiny portion of match-going supporters.   Since the Glazers bought the club in 2005, United fans have regularly protested against their ownership. United also faced criticism when its women’s team was relocated to a group of temporary cabins at Carrington this season to make way for the men’s team due to the renovation work at the training centre. 

Having put his team in place to run the club and its football operations, Ratcliffe’s next big decision will be what to do about Old Trafford, which regularly suffers from a leaking roof and has fallen behind rivals in terms of premium hospitality. The club has appointed a task force, which includes Lord Sebastian Coe and Greater Manchester mayor Andy Burnham, to make recommendations in the coming months on whether to renovate one of the most famous stadiums in the world or replace it. 

Comments

Popular posts from this blog

Threat of financial calamity removed from Baggies

West Bromwich Albion had effectively been in decline ever since the club was sold to a Chinese consortium in August 2016, paying a figure north of £200m to buy former owner Jeremy Peace’s stake. Controlling shareholder Guochuan Lai’s ownership was fairly disastrous for the club, but his unloved tenure finally came to an end after Bilkul Football WBA, a company ultimately owned by Florida-based entrepreneur Shilen Patel and his father Dr Kiran Patel, acquired an 87.8% shareholding in West Bromwich Albion Group Limited, the parent company of West Bromwich Albion Football Club. This change in ownership was urgently required, due to the numerous financial problems facing West Brom, including growing high-interest debt and serious cash flow concerns, following years of no investment from the former owner. Indeed, West Brom’s auditors had already rung the alarm bell in the 2021/22 accounts when they cast doubt on the club’s ability to continue as a going concern without making player s

Gold standard ground boosts Tottenham's income

The gold standard in European football grounds is the Tottenham Hotspur stadium in north London, a £1bn construction project completed in 2019. Its impact on the club’s finances has become increasingly clear as the effects of the pandemic have faded. Previously, the average fan would spend less than £2 inside the ground on a typical match day, but now that figure is about £16, thanks to new facilities including the longest bar in Europe and an on-site microbrewery. Capacity has gone up from 36,000 at the club’s previous home of White Hart Lane to 62,000.  The new stadium — built on land adjacent to White Hart Lane — has opened the door to a broad range of other events that have helped to push commercial income up from €117mn in 2018 to €215mn in 2022. Last year, Tottenham hosted US singer Beyoncé for five nights on her global Renaissance tour, two NFL matches, as well as rugby games and heavyweight boxing bouts.  Money brought in from football has gone up too. Match day income is

Spurs to sell minority stake

Tottenham Hotspur is in talks to sell a minority stake in a deal that could value it at up to £3.75 billion and pave the way for Joe Lewis and his family to sever ties with the Premier League football club. Tottenham chairman Daniel Levy is seeking an investment that values the club at between £3.5 billion and £3.75 billion, including debt. While the terms of any deal have not been finalised, City sources expect Spurs to sell about 10 per cent. The club is being advised by bankers from Rothschild on the sale. Tottenham wants to raise fresh capital for new player signings and to help fund the development of an academy for its women’s team, as well as a 30-storey hotel next to its north London stadium. The financier Amanda Staveley, who brokered the deal for Saudi Arabia’s Public Investment Fund to take over Newcastle United, is understood to be among the parties to have expressed an interest in Tottenham. Staveley’s fund, PCP Capital Partners, has raised about £500 million to depl