Manchester United's dilemma over £20m signing Ruben Amorim surfaces as Old Trafford braces for a potential £160m financial burden
Manchester United's current season has been a challenging one, with the team failing to qualify for European competition in the 2025-26 season and struggling in the Premier League. The Red Devils have won just once in five outings this season, losing to both Manchester City and Arsenal.
The club's financial situation has also taken a hit due to the lack of European competition. According to reports, participation in the Champions League is worth an estimated minimum of £80m for clubs who feature in the league phase. The potential loss of revenue due to not qualifying is primarily due to broadcast, commercial, and matchday revenue.
In an attempt to turn things around, Manchester United appointed Ruben Amorim as their manager last year. However, his tenure has been marked by mixed results, with Amorim managing 47 matches for the club, winning 18 and losing 20. The decision to retain Amorim, if he does not deliver European football for a second successive season, could be an example of the sunk cost fallacy.
The cost of hiring Amorim was reportedly high. According to reports, £10.4m of the cost was in compensation, and £11m was for hiring Amorim and his backroom team. If Amorim were to be sacked, the club could face additional costs. Compensation payments for Amorim's backroom staff would also be required, and the sacking of Amorim could cost Manchester United up to £20 million.
Amorim's contract with Manchester United runs until the summer of 2027, but his job security has been under scrutiny. Betfair has named him as the second most likely Premier League manager to be sacked, with Graham Potter of West Ham United seemingly at greater risk.
Despite the financial and performance pressures, the appointment of Amorim does not necessarily make Manchester United contenders for the Champions League. Switching managers early enough in the season could theoretically give any new arrival a better prospect of correcting the course.
With the Europa League offering a guaranteed £20m, mostly in broadcast payments, and the potential loss of Champions League revenue for Man United greatly superseding the cost of replacing Amorim, the club finds itself at a crucial juncture. The decision they make could have significant implications for the club's future.
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