Manchester United had to fork out considerable money to sack Ole Gunnar Solskjaer in November and let members of his coaching staff go, their financial statement shows
Manchester United had to pay the best part of £10million to sack Ole Gunnar Solskjaer and his staff in November, the club’s financial figures have revealed.
Solskjaer was sacked on November 21 following an embarrassing 4-1 defeat by Watford, while coaches Michael Carrick, Kieran McKenna and Martyn Pert all left the club in December.
The Norwegian was under contract until June 2024 after signing an extension in July, meaning United were forced to buy out the remainder of his deal to secure his departure.
The financial aspects behind his departure have now been made public ahead of new chief executive Richard Arnold speaking to investors to provide an update on the business for the second quarter.
United’s financial report shows that the club had “exceptional items” totalling £10m, which “includes compensation to the former men’s first team manager and certain members of coaching staff for loss of office”.
Manchester Evening News reports that £7m of that relates directly to Solskjaer, while the payments to his coaching staff remain confidential.
The report also revealed that half-year revenue was £185.4m, up 7.3 per cent on the same period in 2021.
That shows the bounce back from the impact of Covid but “non-current and current borrowings” are still £582.2m.
Meanwhile, net debt is up 8.6 per cent to £494.8m, up 8.6 per cent, although the club notes that principal debt “remains unchanged”.
There has been a wage increase of £16m – a whopping 19.6 per cent – over the quarter to £97.7m, following the arrivals of Cristiano Ronaldo, Jadon Sancho and Raphael Varane in the summer transfer window.
“Everyone associated with Manchester United should have belief in the opportunities that lie ahead of us, both on the pitch and in the way we engage and serve our fans,” Arnold said.
“We have a clear vision and we are implementing a strategy to win with an empowered leadership team to drive that forward.
“We will foster a culture of excellence through a world-class football environment, while strengthening the role of fans at the heart of the club and harnessing the power of Manchester United to make a positive impact on people, the environment and society.
“All of this will be supported by a sustainable operating model that ensures the club is strong for the present and secure for the future.”
The update also included comments from football director John Murtough about the search for a new manager.
“We are now conducting a thorough process for the appointment of a new permanent manager who will take charge this summer, with the objective to get us back to challenging for those domestic and European titles,” Murtough said.
“We know that consistency is key as we strive for a top-four finish this season.
“I want to reiterate however that this is not the ultimate objective for Manchester United, and everyone at the club is focused on challenging for the top trophies.
“While there is potential for further improvement and progress, we do feel that we now have the right structures in place across our men’s, women’s and academy teams to support long-term success and we will continue working relentlessly and investing to achieve that.”