Manchester United has disclosed that the hiring and subsequent departure of Dan Ashworth cost the club £4.1m. This amount includes compensation paid to Newcastle United for securing his services and the payoff he received when he left in early December but does not account for his wages.
Ashworth’s tenure as sporting director lasted only five months. His exit followed the dismissal of Erik ten Hag and his coaching staff in October, a decision that cost the club £10.4m. Despite significant efforts to bring Ashworth in from Newcastle, his departure was deemed necessary after a disappointing summer transfer window and strained relations with minority owner Sir Jim Ratcliffe.
The financial impact of these changes was reflected in United’s latest quarterly report. Revenue fell by 12% year-on-year by the end of December 2024, primarily due to reduced broadcasting income after failing to qualify for the Champions League. The club reported a £27.7m loss over the three-month period, though an £80m cash injection from Ratcliffe’s company, Ineos, provided some relief.
United’s financial challenges have intensified, leading to ongoing cost-cutting measures. Since Ratcliffe’s investment in December 2023, 250 employees have been made redundant, with plans to cut a further 200 jobs to stabilize the club’s finances. These measures have been described as essential to ensuring the club’s long-term sustainability.
The club’s chief executive acknowledged the ongoing difficulties, stating that significant efforts were being made to improve the men’s team’s league standing. However, spending restrictions remain in place, affecting player recruitment. The head coach has confirmed that the club must sell players before making any further signings. In the winter transfer window, United made only two additions: Patrick Dorgu, a wing-back signed from Lecce for £20m, and Ayden Heaven, a defender acquired from Arsenal for £1.5m.
The shift toward financial restraint has extended beyond the playing squad. Former manager Sir Alex Ferguson’s £2m annual ambassadorial salary is set to be cut, along with payments to former players who serve as club ambassadors.
In an effort to further reduce costs, Ineos is engaged in discussions with Tottenham Hotspur to terminate a five-year sponsorship deal signed in 2022, in which the company became the club’s official 4×4 vehicle partner. Talks are reportedly amicable, aligning with Ineos’ broader strategy of reviewing and adjusting its sponsorship commitments. The firm is also seeking to end its partnership with New Zealand Rugby ahead of schedule.
Meanwhile, Arsenal has also reported financial difficulties, announcing a loss of £17.7m for the 2023-24 financial year. Despite record revenue of £616.6m, the club’s wage bill saw a significant increase, rising from £234.8m to £327.8m a nearly 40% jump. Arsenal offset some of these losses through player sales, recording a total profit of £51.1m from transfers.
United’s financial restructuring under Ratcliffe marks a significant shift from previous spending habits. As the club navigates ongoing challenges, it remains to be seen how these cost-cutting measures will impact performances on and off the pitch in the long run.
