Ralph Rangnick's side suffered a comprehensive 4-0 defeat at Liverpool in the Premier League on Tuesday.
The Red Devils face a fight to claim a place in the top four as they dropped to sixth on the table after the defeat.
Neville is unimpressed with the club as a whole, as he made a scathing assessment of the Old Trafford outfit.
Neville laid into his former club following the heavy defeat, saying on Sky Sports: "What Manchester United have done is brought players in with piano introductions like [Alexis] Sanchez, or 'Pogback' and all the big palaver around [Paul Pogba's return from Juventus], the Cristiano [Ronaldo] one at the start of the season, they've elevated the player above the manager at the football club as well.
"You go to Liverpool, you go to Chelsea, you go to Manchester City, the manager is the primary figure at the football club. They've undermined managers at Manchester United over the last 10 years by basically elevating the players into this God-like status, and the players haven't performed.
"My view is at this moment in time there are a lot of things, the players could do better, Ole Gunnar Solskjaer at the start of the season could have done better, Ralf Rangnick maybe could have done better, but fundamentally, the club is broken on and off the pitch.
"The stadium's falling apart, the training ground is slipping to second rate compared to others, the owners are taking £25million a year out the club when actually the club needs investment, and it sets the culture badly from the top."
Manchester United travel to Arsenal in their next league game on Saturday.
