Report: Manchester United spent £24.7m on pay-offs for staff last season
According to the Express, Man United spent around £24.7m on pay-offs for backroom staff last season including the two managers Ole Gunnar Solskjaer and Ralf Rangnick adding to the overall debt the club has.
It is no secret that Man United have been run rather shambolically over the past few years. An unsustainable wage bill along with the fact that they have spent incoherently on transfers means that the Red Devils find themselves in a huge debt.
The best example of the above wage problem can be the fact that the Manchester club have been unable to shift Phil Jones out of their books which has meant that the player has earned close to £12m in just over three years after playing just a paltry total of 13 matches.
The latest financial results that emerged from Old Trafford has shown a net loss of £115.5m for last season, which also contributed to the debt of the club. One main reason for this has been the pay-off’s for backroom staff.
Man United has two managers at the helm last season. They started off the campaign under club legend Ole Gunnar Solskjaer but the Norwegian was sacked midway through the season and later replaced by German tactician Ralf Rangnick.
Rangnick was only appointed as an interim manager to take charge of the Red Devils until the end of last season but he was expected to stay on in an advisory role once his time at the hotseat came to an end.
However, the German parted ways with the club by a mutual agreement and went on to become the manager of the Austrian national team. It has now emerged that the Red Devils had to pay £24.7m as compensation for the staff, including these two coaches.
Although club CEO Richard Arnold has chosen to look at the positive side of things like building a competitive squad for this season and also completing a successful pre-season tour, there is no doubt that the Red Devils are in a financial pickle.
Man United need to take a serious internal assessment of where they stand financially and make sure that they don’t end up digging their own grave by increasing the debt. We have seen European giants like Barcelona being crippled by debt in recent years to the extent that they had to let their star players leave and we do not want such a situation.
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It remains to be seen how the Red Devils mitigate this situation. They need to change certain aspects of how the club is being run and it is high time they do that and embark on a more sustainable approach.