How much has sacking managers cost Manchester United?

With Monday’s decision to fire head coach Ruben Amorim, Manchester United payouts to sacked managers and their staff could have reached nearly £98m since 2014, the year following longtime coach Sir Alex Ferguson’s retirement.

Amorim had managed Manchester United since November 2024 and was contracted to the club until the end of next season, in summer of 2027.

Ending his contract 18 months early means Manchester United could face a £12m payout, Sky Sports News reports.

The payout would come during a financially difficult time for the club, which have made a loss six years in a row.

Since 2014, Manchester United have seen ten new managers – nearly one each year. Over the same period, they have paid out almost £86m in “costs associated with loss of office” to former team managers, coaches, other senior staff, and board members.

The Sky News Data x Forensics team analysed the club’s financial statements filed with the US Securities and Exchange Commission to calculate the cost of these payouts.

Now, Amorim’s estimated payout could push the total to nearly £98m.

High manager turnover

The high cost of Manchester United’s payouts can largely be explained by high manager turnover over the past few years, said Kieran Maguire, associate professor in football finance at the University of Liverpool.

“There’s been a lot of churn at Manchester United,” said Mr Maguire. “Each time you have a reset, there is a cost involved as far as the club is concerned.”

Since Sir Alex’s retirement in 2013 after 27 years, the club has had six permanent managers and four interim managers.

“You could argue, it’s a reflection of a lack of success because the clubs don’t dismiss managers if they’re successful,” said Mr Maguire.

Although new managers are often signed on for several years, many do not last the full length of their contract.

In the post-Ferguson era, Manchester United managers in total have left the club with over 147 months – around 4,500 days – still left on their contracts.

Most notably, David Moyes left less than one year into his six-year contract. The payout was at just £5m, according to reports at the time, far from the £36m which he would have earned over the full contract.

The terms of these contracts vary, but many have break clauses which allow for early dismissals if certain conditions, such as qualifying for the Champions League, aren’t met, explained Mr Maguire.

The Big Six

Despite Manchester United’s high turnover rate, Chelsea and Tottenham have had the most managers among the traditional Big Six English Premier League clubs since 2010.

Newly appointed Liam Rosenior will become Chelsea’s sixteenth manager in as many years, following Enzo Maresca’s departure last week. Since 2010, the team has rarely seen a manager make it past the two-year mark.

Chelsea has spent £193m in payouts towards former managers, senior staff, executives, and board members since 2010, according to Mr Maguire’s calculations.

Tottenham’s current manager Thomas Frank has been at the helm since the end of last season. The club has had twelve managers – counting separately Ryan Mason’s two interim stints – since 2010.

On the other hand, Liverpool, Arsenal, and Man City have ushered fewer managers through their doors.

Though Liverpool saw rapid management turnover in the early 2010s, the club have seen more stability in recent years with only two managers in the past decade.

Meanwhile, Arsenal have remained in mostly steady hands, with Mikel Arteta entering his sixth year as manager, following a short leadership stint from Unai Emery and several decades under Arsène Wenger.

Man Utd’s financial woes

Manchester United’s managerial woes are matched by financial ones, its filings show.

The club has incurred losses six years in a row, with £39.7m lost in their most recent financial year.

The club may also face additional, less obvious costs from replacing Amorim beyond the payments owed to him and departing staff from his core team.

The £98m figure excludes the costs of recruiting new head coaches. For instance, Sky Sports News reported last year that releasing Ruben Amorim from his previous contract with Sporting Lisbon cost Manchester United around £9.2m.

Once brought in, new managers often – although not always – choose to reshape the club’s squad, said Mr Maguire.

“If a new manager wants to impose a particular style of football, then that becomes quite an expensive exercise because the manager will have identified playing talent that they want to recruit,” he said. “Therefore, it can often coincide with an increase in transfer spend.”

However, the costs of dismissing Amorim are likely ones the club are willing to swallow on the hopes they can improve their standings. Qualification for the Champions League, Mr Maguire said, is worth between a minimum of £40m and more than £150m if they secure the top place.

Manchester United have failed to break into the top five in the Premier League since the 2022/23 season.

“Clubs such as Chelsea and Manchester United want to be in the Champions League and are therefore willing to incur a financial cost in sacking a manager if they believe that will allow them to get over,” said Mr Maquire.

“With Manchester United sitting sixth in the Premier League, the club’s leadership has reluctantly made the decision that it is the right time to make a change,” read the club’s statement announcing Amorim’s departure.

“This will give the team the best opportunity of the highest possible Premier League finish.”