1 trillion won in debt, and I'm really going to go bankrupt...Manchester United's deficit widens due to Tenhach, restructuring looms
Feb 19, 2025
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Manchester United announced on the 19th (Korea Standard Time) that it had a profit of 198.7 million pounds (about 361.9 billion won) in the fourth quarter of 2024. The BBC reported 'This is a decrease of £225.8 million (about KRW 411.2 billion) compared to the same period last year.
Manchester United's broadcasting rights revenue was nearly halved from £106.4 million (about KRW 38.8 billion) to £61.6 million (about KRW 112.2 billion) last year. In response, Manchester United explained that this result occurred when they went to the Europa League, not the Champions League.
Operating profit also fell significantly. Manchester United's operating profit in the fourth quarter was £3.1 million (about 5.6 billion won), down £27.5 million (about 50 billion won) from the same period in 2023. To make matters worse, the debt increased from 506.6 million pounds (about 922.7 billion won) to 515.7 million pounds (about 939.3 billion won) due to the currency change.
The problem of Erik tenhach, who retired due to poor performance, also overlapped.
In October last year, Manchester United spent a total of 14.5 million pounds (about 26.4 billion won) to replace Tenhach, coaches and general manager Dan Asheworth, and classified it as an "exception" in its financial statements. Since then, the scope is expected to expand further if the penalty and annual salary paid to bring in Coach Hoobeng Amorim, who was in charge of Sporting, are added.
In a letter to fans last month, Manchester United confessed that the club was on the verge of violating the Premier League Sustainability Regulation (PSR), which allows financial losses of up to 105 million pounds (about 19.2 billion won) over three years. The BBC said the total loss in the past five years in Manchester was over 370 million pounds (about 673.9 billion won), but some expenses, such as infrastructure improvement, youth support, and spending for the community, were not included in the PSR calculation.
The blade of damage that builds up eventually leads to restructuring.
The BBC said 'Manchester United did not deny reports earlier this month that it was preparing additional job cuts' Manchester United has laid off about 250 employees since Ineos Group Chairman Jim Redcliffe took office in December 2023. The BBC explained that it expects Manchester United to save up to 40 million pounds (about 72.8 billion won) through the dismissal.
This article was translated by Naver AI translator.
