TA：Manchester United Struggles with Financial Losses Caused by Ten Hag; Firing Him Would Be Self-Destructive

On October 2, Philip Buckingham of The Athletic (TA) wrote an analysis on whether Manchester United can afford the cost of firing or continuing with new manager Erik ten Hag after several summers of extravagant spending on transfers.

Manchester United’s financial situation has recently become strained, with three consecutive years of losses pushing their spending to the limits in the Premier League and UEFA last season. The pre-tax loss for the 2023-24 season was £130.7 million, leading to a total deficit of £312.9 million over three accounting periods, raising questions about their compliance.

【Firing Ten Hag】

It is unclear how much severance pay Ten Hag will receive, but it is certain that replacing the coach will cost millions, potentially up to £16 million. In 2018, firing Jose Mourinho and his coaching staff cost Manchester United £19.6 million. Louis van Gaal and his team received £8.4 million when they left in 2016, with one year remaining on their contracts. These figures show that firing personnel is costly, and dismissing Ten Hag could also lead to the departure of assistant coach Haak.

Earlier this year, Manchester United’s new management laid off around 250 employees, and the cost of firing Ten Hag would exceed the savings from these layoffs. This move would be self-destructive.

【Continuing Trust in Ten Hag】

If they continue to trust him, Manchester United may miss out on the Champions League for a second consecutive season, bringing significant financial losses. The increase in prize money due to the expanded format of UEFA competitions makes this an even greater blow. If they finish at the bottom of the Premier League again, their share of league bonuses will decrease. Participation in the Europa League can maintain matchday revenue, helping to stem the losses, but nothing can replace the success of the Champions League.

After winning the 2022-23 Champions League, Manchester City received £113 million in prize money, a concerning point of comparison.

Additionally, there is the commercial impact to consider. Under the terms of a new agreement starting in the 2025-26 season, if Manchester United do not participate in the Champions League, their income from kit supplier Adidas will decrease by £10 million.