United reveal they paid out €10m to sack Van Gaal
Schweinsteiger also 'written off' as an asset in accounts
Published 13/09/2016 | 02:30
The true cost of the Louis van Gaal era at Manchester United was laid bare yesterday after it was revealed they spent £8.4m (€10m) to end his tenure and rendered one of his star signings completely worthless.
United became the first British club to announce annual revenues of more than half a billion pounds after their accounts up to June 30 showed they had made £515.3m in a single year.
But Van Gaal's miserable final Premier League campaign in charge as manager destroyed their hopes of becoming once again the world's richest football club, with their decision to sack him costing them millions in pay-offs and more.
As well as shelling out £8.4m to end the contracts of the Dutchman and his staff a year early, United were forced to write off midfielder Bastian Schweinsteiger as an asset.
Van Gaal brought the 32-year-old to Old Trafford last year but the injury-plagued former Germany international has been frozen out by new manager Jose Mourinho.
The 'exceptional items' section of United's annual results listed a sum of £6.7m "related to a registrations impairment charge regarding a reduction in the carrying value of a player no longer considered to be a member of the first team playing squad".
Schweinsteiger, who was omitted from United's Europa League squad but included in the Premier League squad under league guidelines, was omitted as an asset to avoid giving a misleading impression to investors about his value.
In a conference call to those investors, executive vice-chairman Ed Woodward made no mention of Van Gaal as it was revealed that United were expecting revenues of between £530-£540m in the current financial year despite their failure to qualify for the Champions League.
Woodward added: "These are very exciting times for Manchester United and we're optimistic for the season ahead and for our longer-term future."