Manchester United’s recent failure to qualify for the 2025 Club World Cup has intensified scrutiny on the club’s financial state. The tournament, which features an unprecedented $1 billion prize fund from FIFA, is a major chance for European clubs. Moving forward, success in this competition might have brought more than $100 million to the best-performing team. Manchester United’s defeat by Tottenham in the Europa League final has highlighted the club’s ongoing decline, both on and off the field.
The Red Bulls, meanwhile, are still reeling from this latest blow. As a consequence, it is lagging in the competition to qualify for the inaugural 2029 Club World Cup edition. Failure to qualify for these important (and very money-worthy) tournaments may continue to sap the remaining talent from Manchester United. This second loss would only speed up the club’s descent into darkness. On top of this, Coach Ruben Amorim will likely have to undergo a second rebuild, this time with an even smaller pool of players. It’s a trend that is increasingly unsustainable.
Financial Woes Deepen
That comes after the club announced an eye-watering loss of £113.2 million ($152 million) last season, Manchester United’s largest ever financial deficit. This unprecedented £120m financial loss has sparked concern over the club’s operation for years to come. The team’s absence from next season’s Champions League will result in an immediate revenue loss of at least €80 million ($90 million), exacerbating their already tenuous financial position.
Even the mighty Manchester United are going through a rough patch. Moving on from a few of its best players could soon be necessary to get out from under the financial storm clouds. Captain Bruno Fernandes and forward Marcus Rashford, now out of favor under new management, are potentially available for transfer. This decision is intended to raise money for the fate of the team. Such moves might save money but would erode what’s left of the team’s competitive advantage, raising questions about the team’s long-term competitiveness.
The club’s ownership structure complicates matters. Even so, the Glazer family continues to own and control the team. British billionaire industrialist Jim Ratcliffe, even as a minority shareholder, has seized operational control. Ratcliffe’s management style has drawn criticism, particularly regarding unpopular cuts to jobs and staff benefits, as well as rising ticket prices for fans.
A Culture in Crisis
Our panel of experts have discussed the alarming crisis engulfing Manchester United. Football finance expert Kieran Maguire added on the larger picture presented by the irresponsible management of the club.
“If I was teaching this at management school (I) would conclude that there is something seriously wrong with the culture of the organisation… which is set by senior management.” – Kieran Maguire
This brave self-assessment lays bare the deep, difficult challenges the club must overcome. It needs to address not just fiscal issues but the deeper institutional culture that has brought it to this sorry state.
The club was reportedly forced into the realization of its own precariousness by an extraordinary statement from the club that pointed out untenable practices throughout its operations.
“This is not sustainable.” – Manchester United club statement
As artists embark on tours across the country, fans are speaking out against exorbitant ticket prices and lack of staff. They’re asking big questions about the direction of their club’s future.
Impact on Team Performance
The impact of Manchester United’s financial woes goes beyond monetary issues. Lack of investment risks eviscerating on-pitch performance as well. Without participation in high-stakes tournaments such as the Champions League and Club World Cup, attracting and retaining top talent becomes increasingly difficult.
New coach Ruben Amorim now faces the daunting task of rebuilding a roster that lost its stars. He needs to steer through the internal morale crisis that fiscal uncertainty has caused. The potential loss of key players like Fernandes and Rashford adds another layer of uncertainty to an already fragile situation.
