Manchester United's extensive restructuring programme under Sir Jim Ratcliffe has resulted in compensation payments exceeding £36.6m. T
he sweeping changes saw approximately 400 positions eliminated, reducing staff numbers from 1,122 to roughly 700.
The financial toll includes payouts for former manager Erik ten Hag's October dismissal and sporting director Dan Ashworth's departure merely six weeks afterwards.
In total, Ten Hag, his backroom staff and Ashworth's dismissals cost the club £14.5m - £10.4million to Ten Hag and his staff and £4.1m to Ashworth alone.
Sir Jim Ratcliffe sacked Erik ten Hag in October last year, while Dan Ashworth was axed weeks before
| GettyThis substantial figure does not include the £9.2m compensation paid to Sporting for Ruben Amorim's services as Ten Hag's successor, which the club is distributing throughout the new head coach's contractual period.
The dramatic workforce reduction represents a fundamental shift in the club's operational structure.
The restructuring efforts contributed to a significant financial improvement, with net losses dropping to £33m for the year ending June 30, compared to £113.2m the previous period.
This reduction of over £80m came despite the club recording its poorest league position in 51 years and missing Champions League qualification.
Revenue reached an unprecedented £666.5m, driven by exceptional commercial and matchday income alongside decreased operational expenses.
Sir Jim Ratcliffe has struggled to get an improvement from Manchester United despite being ruthless off the field | PAThe wage bill decreased by £51.5m to £313.2m, primarily due to players accepting 25 per cent salary reductions following Champions League exclusion.
The club's EBITDA reached £182.8m, representing European football's strongest performance since the pandemic.
Manchester United's on-field performance has plummeted to historic lows, with the team securing merely four points from their opening four matches this season. This represents the club's most dismal start to a campaign in 33 years.
Ruben Amorim's tenure faces mounting pressure as results fail to materialise despite the significant investment in his appointment.
The Portuguese manager's position attracts increasing examination as the team struggles to find form.
Six months earlier, Ratcliffe had warned the club would have gone "bust by Christmas" without his intervention, yet the sporting crisis deepens despite the financial stabilisation achieved through aggressive cost-cutting measures.
Chief executive Omar Berrada maintains an optimistic stance regarding the club's trajectory, emphasising that generating record revenues during "such a challenging year" demonstrates Manchester United's inherent resilience.
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Dan Ashworth left United after five months, having joined in the summer, with his dismissal costing £4.1million
| PAHe highlighted the robust commercial operations that continue delivering "appealing products and experiences for our fans, and best-in-class value to our partners."
Berrada acknowledged the benefits emerging from cost-reduction initiatives whilst asserting that improved financial performance would support their "overriding priority: success on the pitch."
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Manchester United have won just eight Premier League games under Ruben Amorim | REUTERSThe executive pointed to infrastructure developments, including the completed £50m Carrington training facility upgrade, delivered punctually and within budget.
Future ambitions encompass developing a new Old Trafford stadium alongside community regeneration plans.