Manchester United’s decision to part ways with Jose Mourinho in December came at a significant cost, with the club officially revealing a £19.6 million payout to the Portuguese manager and his backroom staff. This figure, disclosed in United’s second-quarter financial results, underscores the financial implications of managerial changes at the highest level of football. While the precise figure might differ from some speculated amounts, this official sum highlights the substantial investment involved when a club of Manchester United’s stature makes a coaching change.
This £19.6 million compensation package, categorized under “exceptional items” in the financial report, covered payouts for Mourinho and the five members of his staff who departed Old Trafford on December 18. Their dismissal followed Manchester United’s underwhelming start to the season, their poorest in 28 years, prompting the club to seek a change in direction. Interestingly, while a considerable sum, this payout is notably less than some initial reports suggested, although it dwarfs the compensations paid to previous sacked managers David Moyes and Louis van Gaal. To put it into perspective, the Mourinho settlement is four times greater than what United paid to each of his two predecessors, highlighting the escalating costs associated with managerial changes in modern football.
Despite this significant expenditure, Manchester United announced record revenues for the same quarter, reaching £208.6 million. This financial success translated into substantial earnings before interest, tax, depreciation, and amortization (EBITDA) of £104.3 million and an operating profit of £44 million. These figures demonstrate the club’s robust financial health and its capacity to absorb substantial one-off costs like managerial compensation without hindering overall profitability.
Image: Ole Gunnar Solskjaer and Wes Brown during their time together at Manchester United.
Following Mourinho’s departure, Ole Gunnar Solskjaer was appointed as caretaker manager, a move that has undeniably revitalized the club. Under Solskjaer’s guidance, Manchester United experienced a remarkable turnaround in form, losing only one of his first 12 games in charge across all competitions. This resurgence propelled the team back into contention for a top-four Premier League finish, a key objective for Champions League qualification.
Executive vice chairman Ed Woodward acknowledged the positive impact of the managerial change, stating, “The appointment of Ole and Mike (Phelan) as caretaker manager and assistant manager, working with Kieran, Michael and Emilio, has had a positive impact throughout the club. We are delighted with the improvement in the team’s performances since December and we look forward to a strong finish to the 18/19 season.” This statement underscores the strategic rationale behind the costly decision to dismiss Mourinho, emphasizing performance improvement as the primary driver.
Jose Mourinho’s final season at Manchester United was marked by underlying tensions and public disagreements. A key point of contention was Mourinho’s public criticism of the club’s board for their perceived lack of support in the summer transfer market. He openly expressed his desire for at least one new center-back, a request that went unfulfilled. Instead, the club’s major signings included midfielder Fred, young full-back Diogo Dalot, and backup goalkeeper Lee Grant.
Image: Paul Pogba celebrating a goal for Manchester United.
Furthermore, Mourinho’s relationship with key player Paul Pogba deteriorated, culminating in Pogba being stripped of the vice-captaincy. Public disagreements between the two were evident, further contributing to the strained atmosphere at the club. Despite these challenges and the ultimately disappointing final season, Mourinho’s tenure at Manchester United was not without success. He led the club to a Europa League and EFL Cupdouble in the 2016/17 season, winning 84 of his 144 matches in charge.
Looking ahead, Manchester United projected annual revenue to fall between £615 million and £630 million. This strong financial forecast, coupled with the positive on-field impact of the managerial change, suggests that while the £19.6 million cost of Jose Mourinho’s departure was substantial, it is viewed by the club as a necessary investment to realign the team’s performance and trajectory.
