Manchester United could make 200 more employees redundant – with free staff lunches scrapped

Manchester United’s Financial Struggles and Restructuring Plans

Manchester United has announced plans to cut an additional 150 to 200 jobs, following the removal of 250 roles last year. This move is part of a broader "transformation plan" aimed at restoring profitability after five consecutive years of financial losses. The club, now under the day-to-day control of Sir Jim Ratcliffe and his INEOS organization, is taking drastic measures to stabilize its finances. The redundancies are part of a strategy to create a more sustainable financial foundation, enabling the club to invest in both men’s and women’s football success and improve its infrastructure. While the consultation process with affected employees is ongoing, the club acknowledges that these cuts will have a significant impact on its workforce.

Austerity Measures and Their Impact on Staff

In addition to the redundancies, Manchester United is implementing a series of austerity measures to reduce costs. One notable change is the elimination of free staff lunches at Old Trafford, a move expected to save over £1 million annually. Furthermore, staff bonuses will be reduced as part of the cost-cutting efforts. CEO Omar Berrada emphasized that these measures, while difficult, are necessary to ensure the club’s long-term financial stability. "We have lost money for the past five consecutive years. This cannot continue," Berrada stated, adding that the club’s priorities remain delivering success on the pitch and improving facilities for fans.

The Club’s Financial Woes: A Deeper Dive

Manchester United’s financial struggles are evident in its latest quarterly accounts, which revealed a loss of £27.7 million for the period. The club’s operating profit also plummeted from £27.5 million to just £3 million. Over the past three years, the club has incurred losses totaling over £300 million, a trend that Berrada described as unsustainable. The financial challenges have prompted the club to justify controversial decisions, such as increasing ticket prices at Old Trafford, despite backlash from fan groups. The club warned that without immediate action, it risks failing to comply with Premier League and UEFA financial regulations, which could further hinder its ability to compete on the pitch.

Turmoil On and Off the Pitch

The financial difficulties are mirrored by the team’s poor performance this season. Currently sitting 15th in the league under head coach Ruben Amorim, Manchester United is struggling to regain its footing. The latest figures also highlighted the costly mistakes made by the club’s leadership, including the decision to extend former head coach Erik ten Hag’s contract only to sack him and his staff nine games into the season. This misstep cost the club approximately £10.4 million. Additionally, the recruitment and subsequent dismissal of sporting director Dan Ashworth added another £4.1 million in compensation and severance pay to the club’s expenses.

Fan Reaction and Ownership Criticism

The combination of financial cutbacks, poor on-field performance, and rising ticket prices has strained the relationship between the club and its fans. Many supporters have expressed frustration over the perceived mismanagement of the club, particularly under the ownership of the Glazer family, who have been accused of prioritizing profits over investment in the team and facilities. While Sir Jim Ratcliffe has become the public face of the club’s cost-cutting measures, the Glazers, who acquired the club in 2005, remain the primary targets of criticism. Fans argue that their ownership has saddled the club with debt and stifled its potential for success.

A Leaner, More Sustainable Future?

Despite the current turmoil, Manchester United’s leadership remains optimistic about the club’s future. By streamlining operations and reducing costs, the club aims to create a more agile and financially sustainable organization. Berrada emphasized that these changes will position Manchester United to reinvest in football success and improved facilities while remaining compliant with financial regulations. However, the path to recovery will likely be long and challenging, requiring patience from fans and stakeholders alike. For now, the club must navigate its financial and on-field struggles, all while working to rebuild trust with its loyal supporter base.