Manchester United confirmed job losses and a rise in ticket prices on Wednesday as the Premier League club sank further into the red in the third financial quarter of a difficult year.
United have undergone a series of changes since British billionaire and INEOS boss Jim Ratcliffe acquired a 27.7% stake in the club earlier this year and took over its football operations.
The 20-time English champions finished eighth in the Premier League last season and their management and owners have been reviewing all aspects of the club's operations.
United plan to cut around 250 jobs as part of a club-wide redundancy programme and will increase ticket prices by around 5% for next season.
While Erik ten Hag will remain as head coach for the new season, the reshaped club has a new CEO and CFO, along with a new sporting director and technical director, hiring many of them from rivals to drive the change.
“The club is undergoing a significant transition, both on and off the field, in the company's operations, which should serve it well in the years ahead,” said Tim Fidler, portfolio manager at Ariel Investments. Ariel is the third-largest investor in the club's publicly traded shares.
“Despite the disruption, we are optimistic that the club's long-term prospects are excellent,” he added, saying plans to develop Old Trafford would be key.
United will play in the second tier of the Europa League next season thanks to victory in the FA Cup final over local rivals Manchester City in May.
Under the leadership of the Glazer family, who remain majority owners, the club has been criticised over the past decade for lavishing money on players from Argentine World Cup winner Angel Di Maria to Brazilian winger Antony.
Player and staff wages in the third quarter rose 7.3% to £91.2m ($117m). Debt stood at $650m at the end of March.
The transfer window has started quietly and Ratcliffe has been clear that United will not overspend in a bid to win major trophies again.
The Old Trafford club reported a net loss of £71.4m for the three months ended March 31, compared with a loss of £5.6m a year earlier.
United now expects annual revenue for the year to the end of June of around £660m and adjusted core profit of around £140m, slightly below the top levels of a range the club has previously given.
New chief executive Omar Berrada will join United this weekend from Manchester City's parent company City Football Group.
