Manchester United chief executive Omar Berrada delivered news of more job cuts to club staff on Monday in the latest line of cost-cutting measures by the Premier League giants.
The club confirmed 200 more jobs could be lost as part of the latest savage cost-cutting by minority owner Sir Jim Ratcliffe and Ineos.
In a statement confirming the cuts, Man United claimed the move was part of a transformative plan to ‘improve the club’s financial sustainability and enhance operational efficiency’.
It is claimed the latest cuts will help return the club to profitability after five consecutive years of losses since 2019, allowing the club to invest in both the men’s and women’s teams.
The stark nature scale of the cuts overseen by Ratcliffe and Ineos was make clear by staff being informed they will no longer benefit from free lunches from the canteen. Instead, they will offered fruit from next week.
Amid the latest raft of cuts, Mail Sport takes a closer look at how cost-cutting measures at Man United have impacted staff, former players and managers, and the club supporters.
Sir Jim Ratcliffe and Ineos have overseen vast cost-cutting since taking a stake in Man United
Chief executive Omar Berrada confirmed the latest round of job cuts in a meeting on Monday
Around 450 people – roughly a third of staff – will have been axed since Ratcliffe’s arrival
STAFF
Mail Sport revealed last July that Man United were making almost a quarter of its workforce redundant, with the club axing 250 of its 1,100 employees.
The redundancies followed a wide-scale cost review which recommended cuts should be made across all departments.
It was claimed the staffing costs had risen to unacceptable levels with United perceived to have a bloated structure.
The Red Devils had 1,112 employees as of June 2023 – the highest in the Premier League – compared to their rivals Liverpool having around 1,005 employees, Chelsea 788, Tottenham 719, Arsenal 649 and Manchester City 520 around the same time.
While the initial cuts are projected to save the club up to £45million per year, Man United confirmed a new wave of redundancies on Monday.
Confirmation of further job cuts, with staff expected to learn their fate in April, would mean Man United will have culled almost a third of its workforce with 450 people leaving the Premier League giants.
Chief executive Berrada, who apologised for spreading yet more gloom when informing staff, explained that other top clubs had been significantly more successful than United with a smaller workforce.
United also confirmed reports that staff will no longer enjoy free lunches at the canteen at Old Trafford and instead be offered fruit – a move that will save £1m-a-year.
Ratcliffe’s cuts followed a wide-scale cost review at United, which was conducted last year
Staff at Carrington will have a different menu to the players from the start of next season
It is claimed the cutbacks will help the club invest in both the men’s and women’s teams
Catering arrangements will remain the same at Carrington for the rest of this season, but then change to a ‘differentiated offering between staff and players’.
The Ineos-regime had attracted ire last year after it was announced Man United’s staff Christmas party had been cancelled – with the club claiming it would have been inappropriate after a year of redundancies.
United had previously held Christmas parties for their staff – including the London office – in a marquis in the West Car Park at the stadium, at Old Trafford Cricket Ground and Victoria Warehouse.
The move – which was estimated to have saved the club £250,000 – came as Christmas bonuses were trimmed. The Glazer family had introduced an annual £100 Christmas bonus, but Ineos have since replaced it with a £40 M&S voucher, saving around £50,000.
Cuts were also made on matchdays with agency staff at the start of the season seeing their lunchboxes scrapped. Some claimed their lunchboxes, which included a sandwich, cereal bar, bag of crisps and soft drink, were replaced by leftovers from the food supplied to corporate punters.
Man United had denied the claim, but stated their review had identified issues with the lunchboxes, saying that much of the food was not eaten and therefore wasted.
The club also axed bonuses for stewards at Old Trafford, which included a £100 attendance bonus and £50 given to ‘steward of the week’. The latter was replaced by a paper certificate to recognise their work. Large numbers of club stewards were also replaced by agency staff.
Corporate guests also saw cutbacks. Traditionally programmes had been provided for each guest in private boxes on matchdays, but it was revealed at the start of the season only five were handed out for boxes of 10 as the club identified wastage after finding some in bins post-match.
Mail Sport reported last week that some of the cuts had received less pushback, with the usage of private chauffeurs and company credit cards were among the first areas targeted.
United lifted the FA Cup back in May, but staff were told they would have to pay for transport
Bruno Fernandes reportedly offered to cover the costs, but saw his proposal turned down
However, even Man United’s FA Cup triumph – the undoubted high-point of Ineos’ year at the club – had come amid dismay from staff over the axing of perks.
Staff were told they would have to pay for transport in a break from a legacy of Sir Matt Busby’s era and a family ethos fostered at the club, an estimated £18,000 saving.
This also included the scrapping of perks for senior staff, such as a pre-match party, lunch after the match, and hotel accommodation and the ability for those employees and directors to bring their friends and family.
Club captain Bruno Fernandes was reported to have been dismayed by the move and offered to cover the costs, but his offer was rejected by the hierarchy.
Anger spiked further when it emerged 24 hours after the staff were notified of the cuts, the other halves of United’s highly-paid stars were out for lunch with the club picking up the tab.
Partners of players were seen leaving the restaurant with Harvey Nichols and Manchester United-branded goody bags, something disgruntled staff labelled a ‘kick in the teeth’.
FORMER PLAYERS AND MANAGERS
One of the most headline making cuts was the decision to axe a £2.16million-a-year ambassadorial position for the club’s legendary manager Sir Alex Ferguson.
Ferguson, who led the club to 38 trophies during his 26-year reign as manager, had signed the lucrative deal to be a global ambassador after retiring in 2013.
The role had seen Ferguson represent United all over the world, as well as match-day hospitality with the club’s partners and sponsors at Old Trafford, and appearing on promotional videos.
Ratcliffe had informed Ferguson of the decision to axe the agreement in a face-to-face meeting at Old Trafford.
Sir Alex Ferguson’s lucrative ambassadorial contract with Man United was axed last year
The meeting had reportedly been amicable, with Ferguson remaining as a non-executive director at the club. The ending of his deal was viewed as a necessary step at a time where the rest of the club were feeling the squeeze.
Mail Sport revealed in December that Ferguson had intervened to make sure the family of legendary Manchester United manager Sir Matt Busby have kept their privileges at Old Trafford.
Busby passed away in 1994 but members of his family have always had complimentary season tickets in the Sir Bobby Charlton Stand next to the directors’ box with access to a lounge.
It’s understood that the seats were moved to a different area of the stand as part of a restructure in the summer, but the Busbys lost their hospitality table and were concerned over a lack of communication from the club.
Ferguson intervened and spoke to Berrada and chief operating officer Collette Roche to ensure the family were taken care of and were given access to the directors’ bar.
The decision to cut Ferguson’s deal had proved a sign of things to come, with club ambassadors having been informed their salaries will be slashed.
Legends Bryan Robson, Andy Cole and Denis Irwin will see their salaries ‘significantly reduced’ from next season. The group of matchday legends, which includes the likes of Gary Pallister, can earn between £500 and £1,000 per game.
Bryan Robson is among the club legends who will see their salaries slashed from next season
Andy Cole and Denis Irwin are among the ambassadors who will see their retainers reduced
Former captain Robson, one of the most popular United players of all-time, carries out a host of engagements for the club. In October, he led a team of 24 on a gruelling trek to the summit of Mount Kilimanjaro to raise funds for the Manchester United Foundation.
Irwin and Cole were also key components of the successful United teams of the 1990s and early 2000s. Cole scored 121 goals in 275 appearances while Ireland international full-back Irwin played 368 times for the club.
In December it was revealed the club were also axing an annual £40,000 donation to The Association of Former Manchester United Players.
The not-for-profit was set up in 1985 to support former players who did not make the vast salaries earned in the modern era.
FANS
Ratcliffe’s cuts have also targeted United fans, a group the billionaire himself claims to be part of.
In November, the club announced it had scrapped concessions for children or pensioners and hiked the cost of home match tickets for members to £66 for the rest of the season in a move that has sparked widespread anger and protests.
The decision, which effectively meant a parent and child would be forced to pay £132 per match, was made in the middle of the season and without consultation with any fan groups. It is also expected to net the club less than £2m in additional revenue, according to the Manchester United Supporters Trust.
Supporters have since made their feelings clear – and laid the blame solely at the feet of Ratcliffe. United fans have regularly been heard calling the 72-year-old a ****, comparing him to the much-reviled Glazer family and chanting ‘£66, you’re taking the p***’. He was also hounded by irate supporters as he left Craven Cottage after the club’s 1-0 win over Fulham in January.
Ratcliffe’s justification only served to increase the vitriol towards him. ‘I don’t think it makes sense for a Manchester United ticket to cost less than a ticket to see Fulham,’ he told the United We Stand fanzine.
MUST had hit out at the club for providing ‘zero consultation’ over the staggering hike and claimed they are being asked to pay for the mistakes of majority owners the Glazer family in what is an ‘offensive’ act. They have since written to Ratcliffe to urge him to freeze ticket prices amid fears of further rises for season-ticket holders next season.
Man United fans protested against the club’s decision to hike ticket prices back in December
Fans protested against the cost of home match tickets for members being hiked to £66
Protest group The 1958 will stage another demonstration over the prospect of ticket rises
Protest group The 1958 will stage a demonstration before the game against Arsenal at Old Trafford next month over the prospect of ticket price increases and the way the club is treating the fans.
A 1958 spokesperson said: ‘We are angry, the fans are angry and it’s been building for some time. We have all been more than patient.
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‘We all know the root cause; we have always known the elephant in the room. Yet, this isn’t being addressed. It’s those who can least afford it, have the most emotional connection with our club who are being asked to pay the price in more ways than one. The current owners are trampling over generational support and memories of friends and family. Enough is enough.’
As well as the price hike, Ratcliffe and Ineos have also axed ticket collections for United’s European away games to save money. Previously, club staffers would travel to the host city to distribute tickets but now they are either sent by email or as a download to a fan’s digital wallet.
The results have been hugely damaging for some of the club’s most loyal supporters and to the credit system, where fans are given one credit for each match attended.
The previous system stopped fans who had no intention of travelling from buying tickets to inflate their credits or selling them on for profit.
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