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Manchester United has announced a new round of job cuts and ended free lunch for staff as shareholder Sir Jim Ratcliffe puts a further squeeze on spending in an effort to revive the fortunes of the struggling team.
United has been aggressively cutting costs since British chemicals billionaire Ratcliffe became a minority shareholder a year ago and handed day-to-day control of sporting operations to executives from his company Ineos.
The club said on Monday that up to 200 people would be made redundant, in addition to the 250 jobs that were cut last year.
“We have lost of lot of money for the past five consecutive years. This cannot continue”, said Omar Berrada, who joined United as chief executive last year. “At the end of this process, we will have a more lean, agile, and financially sustainable football club.”
Berrada added that the club hoped to return to profitability and be in a “much stronger position to invest in football success and improved facilities for fans”.
The club’s latest “transformation plan” is set to include a wide range of money-saving measures, such as ending free meals for staff and reducing the number of people working for it in London.
Bonuses will be reduced and a new incentive scheme that is more closely linked to both sporting and financial performance will be brought in. The club will also introduce a new menu at the Carrington training ground, so that players and staff are no longer offered the same meals.
United dominated the Premier League from the early 1990s until Sir Alex Ferguson’s retirement as manager in 2013. However, the team has not won the league since then, and currently sits in 15th position in the league table, having lost 12 games out of 26.
Ratcliffe’s spell in charge of the sporting operations has also been plagued by costly decisions. The club sacked head coach Eric ten Hag in October, just three months after extending his contract, and replaced him with Portuguese manager Ruben Amorim, at a cost of £21mn. Dan Ashworth also departed as sporting director after less than six months in the post.
The club has also been active in the transfer market, spending about €240mn this season, according to figures from Transfermarkt, the third-highest in European football.
The Glazer family still owns the majority of shares in the club, which is listed on the New York Stock Exchange. United posted losses of £113mn last year despite record revenue of £661mn, and lost £27.7mn in the most recent quarter.
In addition to cutting costs, the club has also sought to increase revenue. Late last year, it announced an end to concession ticket pricing for children and pensioners, a decision the Manchester United Supporters Trust described as “offensive”.
United’s owners are due to decide at the end of the season whether to replace or upgrade the club’s Old Trafford stadium. One major stumbling block is how any project would be financed, with a full rebuild likely to cost about £2bn.
