Manchester United paid a compensation bill of £14.5m to former head coach Erik ten Hag, his coaching team and ex-sporting director Dan Ashworth, as revealed by the club's quarterly accounts.
Ten Hag was widely expected to lose his job as manager at the end of last season, but his success in the FA Cup, which secured qualification for the 2024-25 Europa League, led to him remaining at the helm.
The Dutchman was ultimately sacked in October, though, and he was followed out of the door by Ashworth in December despite the Englishman only arriving as part of a revamp over the summer.
The second quarter fiscal period accounts were submitted to the New York Stock Exchange on Wednesday, and the huge compensation fees were revealed, being listed under 'Exceptional Items'.
"Exceptional items for the quarter were a cost of £14.5m. This relates to costs associated with the departure of former men's first team manager Erik ten Hag and various members of football staff," said the club.
© Imago
Sacking Ten Hag, coaching staff, Ashworth cost Man United £14.5m
Broadcasting venue has dropped by 42.1% due to the team's absence from the Champions league, and the club will also not be playing in Europe's elite competition next term unless they win the 2024-25 Europa League.
"We recognise the challenges in improving our men's team's league position and we are all working hard, collectively, to achieve that. At the same time, we are pleased to have progressed to the knock-out phase of the UEFA Europa League and the fifth Round of the FA Cup," said Man United chief executive Omar Berrada.
"Meanwhile, our women's team is currently placed second in the Women's Super League, and has reached the quarter-finals of the FA Cup.
"Our redevelopment of the Carrington Training Complex remains on track. We continue to work towards a decision on the future of Old Trafford as part of a wider regeneration programme, which has now attracted UK Government support.
"This follows the work of the Old Trafford Regeneration Task Force in demonstrating the significant economic potential of a revitalised area around a future stadium project."
© Imago
Will Man United have money to spend this summer?
Man United head coach Ruben Amorim has not been shy in revealing the club's situation, with the Red Devils needing to move players on in order to buy during this summer's transfer window.
Two new signings arrived in January, with Patrick Dorgu making the move from Lecce, while Ayden Heaven arrived from Arsenal, but the club decided against improving their attack despite allowing Antony and Marcus Rashford to leave on loan.
It is expected to be a summer of huge change for the Red Devils, with Victor Lindelof, Christian Eriksen and Jonny Evans set to leave on free transfers, while Casemiro, Rashford, Antony and Rasmus Hojlund are among those who could be sold.
Due to the rules surrounding profit and sustainability, serious offers for Kobbie Mainoo and Alejandro Garnacho would also be considered, with Man United facing a number of difficult decisions heading into the summer market.
© Imago
Man United Supporters' Trust address latest figures
A spokesperson for the Manchester United Supporters' Trust said: "United has amongst the highest revenues in world football and yet we see huge financial problems in these results, driven by £19m in debt interest payments (over six months), mismanagement including paying £14.5m compensation to a manager only given a new contract a few months earlier, a disastrous record in player trading over the last decade, and now dreadful performances on the field making matters worse with every league place we fall costing a further £4m in prize money.
"In this context, it is clear that ticket prices at United are plainly not the problem with the recent £66 changes raising less than £2m. This shows big increases in prices would be futile and counterproductive, making only a trivial difference to the financial challenge whilst hugely harming fan sentiment and worsening the mood in the ground which inevitably feeds through to even worse team performances.
"Fans should not pay the price for a problem that starts with our crippling debt interest payments and is exacerbated by a decade or more of mismanagement. It's time to freeze ticket prices and allow everyone - players, management, owners and fans - to get behind United and restore this club to where it belongs."
The Red Devils will be bidding to bounce back from successive Premier League losses to Crystal Palace and Tottenham Hotspur when they head to Everton in England's top flight on Saturday afternoon.
Matt Law
