United have confirmed the club’s charitable donations will be focused on the Manchester United Foundation and Manchester United Disabled Supporters’ Association, and their annual donation of £40,000 to the latter will remain unchanged. They are in talks with the Manchester United Foundation about their future levels of contribution, though it is indicated that significant support will continue.
Berrada added: “Our two main priorities as a club are delivering success on the pitch for our fans and improving our facilities. We cannot invest in these objectives if we are continuously losing money.
Last month, in a response to a letter from fan groups about increasing ticket prices at Old Trafford, United responded by saying: “We are currently making a significant loss each year – totalling over £300m in the past three years.
“This is not sustainable and if we do not act now we are in danger of failing to comply with PSR/FFP requirements in future years and significantly impacting our ability to compete on the pitch.”
Last week, United’s quarterly accounts showed a loss of £27.7m for the period, with operating profit tumbling from £27.5m to £3m.
Those latest results showed the decision to extend Erik ten Hag’s contract as head coach in the summer and then fire him and his backroom staff nine games into this season set United back around £10.4m.
The accounts also showed it cost United in excess of £4.1m in compensation and then severance to bring sporting director Dan Ashworth to the club and then sack him.
Free lunches for staff axed
As well as the redundancies, the ‘transformation plan’ will see the end of free staff lunches at Old Trafford – saving over £1m per year, according to the club.
Bonuses for staff will also be reduced this year, with some staff moving from Old Trafford to the Carrington training ground and all of the club’s leadership now to be Manchester-based, including new chief business officer Marc Armstrong, who began work on Monday.
“The problem has been the vast sums of money that have been spent on the transfer market, players who have not delivered. Also the fact the executives at United have made decisions that have cost the club a lot of money, like Erik ten Hag’s new contract and having to be paid off.
“When you talk United and finances, you have to talk about their ownership. Being owned by the Glazer family has cost them well over £1bn over the last 19 years.
“When they bought the club, they borrowed £600m and loaded it on to the club. The club have paid £834m in interest on that debt, 19 years later that debt has gone up to £731m. This is a club who were debt-free when the Glazers bought United.
“They also spent £391m in transfer payments. Total debt is £1.1bn. In the past 10 years the Glazers family have taken dividends of £177m and just over a year ago they sold 25 per cent of the club for around £1bn to INEOS.”
At the end of this process, we will have a more lean, agile and financially sustainable football club, while continuing to provide a world-class service to our valuable commercial partners. We will then be in a much stronger position to invest in football success and improved facilities for fans, while remaining compliant with UEFA and Premier League regulations.”
‘The people losing jobs are not responsible for Man Utd problems’
Sky Sports News chief reporter Kaveh Solhekol:
“People are losing jobs. A lot of them losing their jobs are not the ones responsible for the fact Manchester United have lost something like £300m over the last three years.
“When you look at why United are struggling financially, those people are not the ones to blame.
