Manchester United manager Ruben Amorim during a press conference at Carrington Training Centre
Manchester United manager Ruben Amorim during a press conference at Carrington Training Centre
Sam Wallace
©Telegraph.co.uk
Today at 16:06
Manchester United have warned investors that the cost of sacking Erik ten Hag and then buying Ruben Amorim out of his new contract came in at a total of £21.4million.
The warning was included in United’s most recent quarterly accounts published this week − citing the severance costs due to Ten Hag, who was given a new contract in June, as £10.4million. The Dutchman was shown the door just four months later.
It was accepted that Amorim would have a considerable £10million buyout clause from his previous club Sporting of Lisbon and that was negotiated by United chief executive Omar Berrada.
Ruben Amorim has succeeded Erik ten Hag (Martin Rickett/PA)
Ruben Amorim has succeeded Erik ten Hag (Martin Rickett/PA)
The extra £1million was in order that Amorim did not have to see out his full notice and could join United at the start of this month’s international break.
The £10.4million to sack Ten Hag included pay-offs to other members of departing staff. The costs, as with those relating to Amorim and the appointment of his staff, will be included in the quarterly results up to the end of June next year.
The costs are important because as with all expenditure on players they will count towards United’s compliance with profit and sustainability rules (PSR).
As things stand the club is already limited in how much it can invest in players in the next two windows unless it can raise funds from sales.
United’s losses before tax total £312.9million over the past three seasons, and under Ten Hag the club invested £600million in transfer fees. Amorim will be expected to work with what he has while the club stays within PSR limits.
United need to get back into the Champions League in order to benefit from its growing revenue with the new format.
There were 250 jobs cut among rank-and-file staff over the summer as new minority stake, majority influence, owner Ineos made what it considered vital economies.