Manchester United Faces Compensation Costs, Boosts Borrowing Capacity

Manchester United may incur compensation costs of up to £15.9 million ($21.4 million) for former head coach Ruben Amorim and his coaching staff following his dismissal. Concurrently, the club has twice expanded its revolving credit facility in the past seven months, increasing its borrowing capacity to £400 million ($539.6 million).

Coaching Staff Compensation Detailed

Ruben Amorim was dismissed as head coach on January 5, following a 1-1 draw with Leeds United. The dismissal was cited by one report as stemming from a breakdown in behind-the-scenes relations. Michael Carrick replaced Amorim, and as of the reporting period, has overseen five wins in six Premier League games.

Initial reports had suggested a compensation package of approximately £10 million for Amorim. However, the club's full second-quarter results indicate a provision of £15.9 million, recognized as the maximum potential amount for future settlement payments to Amorim and his staff.

Manchester United has provisioned £15.9 million for future settlement payments to Ruben Amorim and his coaching staff.

Additionally, Manchester United reported writing off £6.3 million ($8.4 million) in amortised fees that were paid to Sporting CP, Amorim's former club, following his appointment. The club's second-quarter results, initially released on December 31, did not include specific details of the settlement terms with Amorim and his staff at that time.

Revolving Credit Facility Expands

The club has upgraded its revolving credit facility on two occasions within the last seven months. On February 10, Manchester United increased its borrowing capacity to £400 million ($539.6 million), up from a previous limit of £350 million ($472.1 million). This followed an earlier increase last summer, which saw the facility raised from £300 million ($404.7 million). The expansions have been implemented to support transfer spending.

Manchester United's revolving credit facility has been expanded twice in seven months, now reaching £400 million to support transfer spending.

As of February 17, Manchester United had borrowed £215 million ($290 million) from the facility, leaving £185 million ($249.6 million) available for further use.