Ruben Amorim’s tenure as head coach of Manchester United ended abruptly, marking yet another costly managerial dismissal in the club’s storied history. His exit occurred on a Monday morning, less than halfway through his three-year contract, just over a year after taking the position.
Details of Amorim’s Dismissal
Amorim was let go following a tumultuous 14-month period characterized by poor results and internal staff tensions. His exit adds to the long list of managerial changes, with only David Moyes managing fewer games during his recent reign. United will incur approximately £10 million (about $13.5 million) in compensation for Amorim and his staff, as his contract was set to expire in June 2027.
A Brief Background
- Amorim took over as head coach in November 2024.
- He was regarded as one of Europe’s promising young managers after a successful stint at Sporting CP.
- United paid about £11 million to secure his services along with his coaching team.
- In his former club’s final match, Sporting defeated Manchester City 4-1 in the Champions League shortly before his appointment.
The Financial Implications of Managerial Changes
Sacking managers comes with significant costs, an issue that has become increasingly pronounced since the acquisition of a stake by Sir Jim Ratcliffe in February 2024. Financial prudence was not a concern for United during Sir Alex Ferguson’s long management tenure, which lasted until 2013. However, in the years since, constant managerial turnover has led to hefty compensation payouts.
Historical Dismissal Costs
The financial toll of past managerial sacking is substantial:
| Manager | Compensation Cost (£ million) |
|---|---|
| Ferguson | 2.4 |
| Moyes | 4.9 |
| Van Gaal | 8.4 |
| Mourinho | 19.6 |
| Solskjaer | 9.1 |
| Ten Hag | 10.4 |
| Rangnick (not fully disclosed) | 14.7 |
Combined, these costs for managerial dismissals total around £64.9 million. However, this figure is a small fraction of United’s overall revenues since Ferguson’s departure, amounting to less than one percent.
Recent Financial Pressures
Despite past profit increases during managerial changes, recent underperformance has strained United’s finances. The club’s 15th-place finish last season resulted in the lowest Premier League prize money since 2016, as they missed out on European competition this season. Projected revenue drops for 2025-26 threaten to impact their financial stability further.
Looking Ahead
Following Amorim’s dismissal, United faces the challenge of ensuring they achieve a top-tier league finish to avoid further financial repercussions. Their performance after the manager’s exit has already raised concerns, evident in their recent struggle against Burnley, where they only managed a draw.
As Manchester United continues to revamp its operations, the focus remains on improving on-field performance while managing the ongoing costs of managerial changes. With Amorim’s departure, they will have to navigate these challenges while striving for success.
