"Manchester United's sweeping job cuts have cost more than £36 million in compensation, but helped slash losses and deliver record revenues, casting doubt on Sir Jim Ratcliffe's claim that the club was on the brink of financial collapse. The restructuring, which saw around 400 jobs axed and included pay-offs for sacked manager Erik ten Hag and sporting director Dan Ashworth, reduced net losses to £33m in the 12 months to June 30 - down from £113.2m the year before."
"Despite the turbulence, United posted revenues of £666.5m - the biggest in their history. Analysts say this undercuts Ratcliffe's dramatic warning earlier this year that the club could go "bust by Christmas 2025". Although the balance sheet remains stretched by ongoing transfer spending and another season outside the Champions League, United's ability to generate cash is formidable. The club's EBITDA - earnings before interest, taxes, depreciation and amortisation - reached £182.8m"
Manchester United paid over £36 million in compensation for around 400 job cuts that reduced headcount from 1,122 to about 700. The restructuring, including pay-offs for Erik ten Hag and Dan Ashworth, trimmed net losses to £33m for the year to June 30, down from £113.2m. Broadcast income fell by almost £50m after missing the Champions League, but commercial revenue rose 10% to a record level and matchday takings increased nearly 17%. Wages dropped £51.5m after a player pay cut. Total revenues reached £666.5m and EBITDA climbed to £182.8m, reflecting strong cash generation.
Read at Business Matters
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