What Man Utd’s jarring financial results reveal about Amorim

Ruben Amorim didn't have to wait long for his first memory of the job he has taken on at Manchester United, as his new signing limped to a 1-1 draw against a club whose wage bill is fourteen times smaller, away to Ipswich Town .

While the Portuguese would have been busy installing his new formation at Carrington earlier on Tuesday, there was a further shock as United published their accounts for the first quarter of the financial year.

They made for grim reading. United lost £6.9 million in three months, which may not seem like a big deal. But it continues a desperate pattern. Last year they made a loss of £113.2 million. Over the past five years, losses totaled more than £370 million.

Current Premier League Profit and Sustainability (PSR) rules allow £105 million over three years. United are confident they will achieve these targets as regulations allow amounts spent on infrastructure, academies and women's teams to be deducted from the calculations.

Someone in the accounting department is going to be seriously busy in the coming months before the end of the reporting period, almost as busy as the new man in the dugout. All of this points to a recognition that has been circulating around Old Trafford since control was handed over to Sir Jim Ratcliffe and Ineos. Money is tight.

The last man charged with returning Manchester United to its increasingly distant glory days under Sir Alex Ferguson will not be able to pull out his checkbook and buy his way back to the top.

“The firepower to come in and rebuild the side just isn't there,” explains an insider. “That's because of years of losses.”

There is recognition within the club that these losses have been caused by a generally terrible record in the transfer market. Amorim and Ineos are paying for the sins of those who came before them and will now have to get creative because, simply put, they can't get out of this mess on money. Even if they had the money, the rules don't allow that.

None of this is to say that any of the above comes as a surprise to the new man or the trust in Ineos' brains. While United wanted a new manager with tactical acumen, energy and charisma – and officials are already seeing indications that they have succeeded on all three fronts – they also knew they needed someone who can make the most of what they have.

Amorim did not benefit from a huge budget at Sporting Lisbon and is known as a developer of young talent. He will be tasked with unearthing gems within United's academy system. In the age of financial fair play, finding a new Kobbie Mainoo and Alejandro Garnacho is priceless.

Amorim will work closely with sporting director Dan Ashworth and technical director Jason Wilcox to find ways to improve the squad without putting United in financial trouble. A current and clear problem is the left back, but an orthodox solution is difficult. It is entirely possible that United will look for a deal that will see them acquire a loan solution, with the addition of an agreed fee at a later date.

The emphasis will continue to be on recruiting younger players. The arrival of people with the profile of a Casemiro and spending £70 million for a 30-year-old is a thing of the past.

Looking ahead, Amorim took 16-year-old Godwill Kukonki with him on the trip to Portman Road and while the young defender has benefited thanks to an injury crisis in defence, the move could be a taste of things to come.

While Ashworth and Wilcox will be key players in implementing the new strategy, they will also rely on Chris Vivell, who was appointed interim recruitment director after leaving Chelsea.

Vivell is best known in football for his time within the Red Bull group, where the emphasis was on youth. He was credited with bringing Erling Haaland to Red Bull Salzburg in 2019, while others – including United – looked the other way.

Vivell and the rest are currently assessing the club's scouting network and Amorim will get his opinion on any next steps in their bid to get value for money.

The Portuguese is also tasked with overseeing an upturn in form and performance from what is widely seen as an underperforming group. Many within the club believe that the level of talent within the existing squad is not that of a team that should be twelfth in the Premier League, having scored as many goals as goals conceded.

While there is an acceptance that there have been misses, such as the ridiculous £85 million spent on one-foot, one-trick Antony, there is also a belief that the best is yet to come from the likes of Mason Mount and Rasmus Hojlund. while excitement continues over 19-year-old centre-back Leny Yoro, who is yet to make his debut following his £52m arrival from Lille in the summer.

When everyone is fit, Amorim often has the personnel needed to get his 3-4-3 to a level that could put United back in contention for a Champions League spot, without the major operation that the club can't afford. Although the aim is to win trophies, qualifying for Europe's top competition this season would be an achievement in itself.

The current absence of Champions League football has also been exposed in the figures. While United benefit from paying their players less to participate in the Europa League, that saving pales in comparison to the lost revenue.

The latest figures show a decline in advertising, broadcasting (by 20 percent) and match day revenue. Although football, with all its raw emotions, cannot be seen as any other business, balance sheets are balance sheets. Few companies can consistently blow £100m after £100m and continue to do so for long.

Ratcliffe and his group, who are where they are today thanks to their business acumen, are well aware of this.

They have already undergone a series of cost-cutting measures. As Mail Sport revealed, 250 staff were made redundant. However, in the short term this entails costs. Those who left due to redundancy packages, which had raised as much as £8.6 million.

The view is that these measures will ultimately result in savings of £40 to £45 million per year and are therefore worth the pain. If that is the case, it concerns money that is channeled to the first team, which is simply not there at the moment.

Such was the importance of this exercise that CEO Omar Berrada, who has probably never had this problem in the whole of Manchester, was moved to comment on it when the figures were published.

“Our cost and workforce reductions remain on track,” he said. Berrada also welcomed the arrival of Amorim, who he said was at the heart of their commitment to 'return Manchester United to the top flight of domestic and European football'.

Amorim has already started his task with great pleasure. According to witnesses, his impact and connection with the first team was almost immediate. There is a warmth that hasn't been seen in a while and at 39 years old he is considered relatable.

He has been described as “chalk and cheese” compared to some of those who came before him. In the late stages of Erik ten Hag's reign it was noticeable that the days often resembled a series of battles. Although there has been the traditional revival of the new manager, Amorim's arrival has had an immediate uplifting effect.

There have also been glimpses of his charisma among the public, not least during his opening press conference.

There are positive signs elsewhere too that it could be easy to forget given United's dire spell that has now lasted more than a decade. Indeed, there are kids in the city and beyond who are now in high school who only know the loud neighbors as the ones who win. the trophies.

United estimates turnover this year at £650 million to £670 million, despite all the turmoil and underperformance. At last count, as many as 180,000 fans were on a waiting list for season tickets. There is no other club in the country and perhaps on the planet that can boast such a fan base.

It may be part of that support, but the transformation of Liverpool's finances, thanks to Jurgen Klopp's revolutionary spell at Anfield, has not gone unnoticed by the old enemy.

It's still very early days, but the hope within Old Trafford is that they have the man who can oversee a similar change in fortunes. “Just think what that revenue could be if United got to where they should be on the pitch,” one source asked.

At least now there is recognition that success on the pitch is at the heart of everything. That hasn't always been the case as a former director made a habit of criticizing the communications team for negative stories written after the first team limped to defeat again.

“Look what they write, because you're not doing your job,” he would say. Serious.

That task, the biggest in football, now rests on the shoulders of Amorim. Today's statement shows that United's figures are once again incorrect. It is Amorim's job to ensure that change happens.