Latest Manchester United accounts reveal £19.6m payoff to Jose Mourinho and staff

Jose Mourinho’s firing cost Manchester United just under £20 million according to the club’s latest financial results.

It means the overall termination costs to sacked United managers since Sir Alex Ferguson's retirement in 2013 has soared to £33.2 million.

The severance payment for Mourinho and his staff was revealed in United’s half-yearly accounts, with £19.6 million attributed to an “exceptional item relating to compensation to the former manager and certain members of the coaching staff for loss of office”.

Members of Mourinho’s backroom team including goalkeeping coach Silvino Louro, coaches Stefano Rapetti and Carlos Lalin, scout Ricardo Formosinho and analyst Giovanni Cerra left Old Trafford with their boss, although the largest proportion of the pay-out was given to the departing manager.

The Portuguese coach’s compensation was higher than that of predecessors Louis Van Gaal and David Moyes, United continuing to pay a heavy price for their inability to find a long-term replacement for Ferguson. Van Gaal and his coaching team received  £8.4 million when dismissed in 2016. Moyes and his staff were compensated to the tune of £5.2 million in 2014.

United now face the critical decision on who will be their next permanent manager, the public clamour increasing for Ole Gunnar Solskjaer to be given a long-term contract having re-established United’s attacking identity on the pitch, and brought respect and dignity to the management role in his demeanour off it.

Executive vice chairman Ed Woodward said: “The appointment of Ole and Mike as caretaker manager and assistant manager 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.”

Woodward was unwilling to comment on who might be in charge before the start of next season.

Solskjaer has won eight of nine Premier League games, leading United back into the Champions League qualifying positions and winning the manager of the month award for January.

Tuesday’s defeat to Paris Saint Germain was his first since assuming charge, but United's executives are understandably planning a thorough review before determining who will fill the role for a new era. Tottenham's Mauricio Pochettino is certain to be part of those considerations.

“I am not going to get into the manager,” said Woodward.

“We communicated in December Ole was coming in and what was happening. We won’t give any updates part way through a season.”

It is well documented United want to employ a sporting director, something their rivals Manchester City and Liverpool have done to positive effect in recent years.

“Looking at our structures and how we should strengthen, it is something we are doing on a continual basis. We are looking to make it stronger,” said Woodward.

Overall, United declared record quarterly revenues of £208.6 million, with commercial revenues rising to £65.9 million. The accounts also revealed United’s net debt now stands at a massive £317.7 million. The impact of the recent broadcast deals at home and in Europe has helped, leading to a £28.5 million increase from that source to £103.7 million.

United’s quarterly wage bill for the quarter until December 31, 2018, was £77.9 million, reflecting contract extensions to key players as well as the recruitment of a new caretaker management team led by Solskjaer.

United’s executives were especially enthusiastic when discussing commercial opportunities in China, where the club claim they are the most popular club.

Speaking on a conference call to shareholders, managing director Richard Arnold and chief financial officer Cliff Baty said the club will be opening several “entertainment and experience centres” in the country by the end of 2020.

United have confirmed their participation in the pre-season International Champions Cup to be held in Asia this summer, and have also lined up a visit to Australia.