Unlock the Editor’s Digest for free
Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.
Manchester United swung to a loss in the second quarter after it was hit by the cost of firing former coach Erik ten Hag and lower broadcast revenue after it failed to qualify for elite European competition.
United recorded a net loss of £27.7mn in the three months to the end of December, compared with a profit of £20.4mn a year earlier. Revenue fell 12 per cent to £199mn, as a 42 per cent drop in broadcast revenue more than offset growth in the commercial and match day segments.
The team’s decision to part ways with ten Hag and his coaching staff after a slump in form that pushed United, the most successful side in English top-flight football, to the bottom half of the table, contributed to £14.5mn of “exceptional” costs.
United replaced the Dutchman with Portuguese coach Ruben Amorim in November, but the men’s team has continued to struggle and is languishing in 15th place in the Premier League table.
Omar Berrada, chief executive, said: “We recognise the challenges in improving our men’s team’s league position and we are all working hard, collectively, to achieve that.”
He noted that United had qualified for the knockout phase of Europe’s second-tier competition, the Europa League, while its women’s team was currently second in England’s Women’s Super League.
United’s balance sheet benefited from a further $100mn injected by Ineos as part of the agreement for Sir Jim Ratcliffe, the chemicals company’s founder and chair, to take a minority stake in the club. He now sits alongside the Glazer siblings in running the club.
The American family, which has controlled United since 2005, has been heavily criticised since their takeover was financed by hundreds of millions of dollars in debt that the club is still paying interest on.
The petrochemicals tycoon, a life-long supporter of the club, is attempting a turnaround at United, which has struggled since the pandemic battered its finances because of the effect of lockdowns on ticket revenue.
While Ineos completed the capital injection at United, the company’s involvement in some other sports soured recently as it sought to cut costs.
It has clashed with the organisation that runs New Zealand’s All Blacks rugby team after it attempted to renegotiate a sponsorship agreement, blaming the “deindustrialisation of Europe” and pressure on the chemicals industry.
New Zealand Rugby has launched legal action over what it termed a breach of contract. Last month, Ineos announced a break-up with Sir Ben Ainslie, the British sailor who had spearheaded Ineos’s effort to win the America’s Cup. Ainslie has threatened legal action.
Separately, Ineos Grenadiers, the cycling team previously known as Team Sky, is looking for a second major sponsor, with its boss, John Allert, saying it was “fair to say that Ineos don’t want to spend more money”.
