Manchester United have reported a £22m charge from the sacking of former manager Ruben Amorim, though improved on-pitch performance and cost-cutting helped halve pre-tax losses to £18m in the first nine months of the year.
The club's successful pursuit of Champions League football under Michael Carrick drove a 57% rise in broadcast income during the third quarter to nearly £65m, as more games were selected for television. This boosted full-year revenue forecasts to between £655m and £665m, up from the previous £640m-£660m range.
Co-owner Jim Ratcliffe's cost-cutting drive, which included hundreds of staff redundancies, closure of the staff canteen and replacing free lunches with fruit, reduced operating expenses by £19m to £525m. However, this saving was offset by the cost of sacking Amorim in January, with the Portuguese and his backroom staff receiving up to £16.7m in payoffs and a £5.2m non-cash write-off of contract costs.
Football finance expert Stefan Borson of McCarthy Denning said: 'The cost of removing managers continues to haunt the club.' Despite the overall pre-tax loss of £18m—less than half the £36m loss in the same period last year—the club reported a £37.7m operating profit, stripping out debt interest payments.
United's revenue forecast is now seen as a 'base case' by Borson, given the absence of European football and a training kit sponsor this season. However, a £20m deal with Betway for next season's training kits and an estimated £80m from Champions League qualification under Carrick, who was appointed permanent manager on Friday, are expected to boost finances.
