Sir Jim Ratcliffe is preparing to make another 100 members of staff redundant at Manchester United – taking his total cull to 350 since assuming control at Old Trafford.
United have lost £300 million in the past three years and a looming new round of job cuts is said to have left the rank and file feeling they are paying the price for mistakes at executive level.
Senior sources behind the scenes maintain Ratcliffe’s capital injections of £241 million helped ease immediate pressures – but there is acknowledgment the long-term financial picture is “challenging”.
Fresh cuts at Old Trafford come on the same day Ratcliffe’s petrochemical firm Ineos told Telegraph Sport “we have had to implement cost-saving measures across the business”.
The company had been responding to revelations in this publication that New Zealand Rugby was taking legal action over an alleged breach of their multi-million pound sponsorship deal.
Other changes in the wider Ineos sport strategy include the shock America’s Cup divorce from Ben Ainslie last month and sweeping change at the top of the Ineos Grenadiers cycling team, for which new sponsors have been sought.
Arresting an alarming slump at United is now the top priority for Ratcliffe’s sporting interests, however. He has so far spent a total of £1.25 billion on his 28.94 per cent stake at the club. More job cuts are proposed after his decision to redirect expertise and key personnel towards Old Trafford from other corners of his sporting empire.
Ratcliffe last summer signed off on a 250-person cull but, with the team in 13th place in the Premier League, those behind the scenes point to costs remaining too high on and off the pitch.
Staff have already been told the club have to explore every option, including reducing costs and raising revenues. Insiders maintain there are no final decisions or announcements in relation to the proposed 100-person job cut.
However, it is understood the executive is set to confirm the number within days. Staff facing potential cuts, meanwhile, argue they may be paying the price for expensive recruitment mistakes around Erik ten Hag and Dan Ashworth over the past year. A £200 million summer transfer spend has also drawn criticism – with Matthijs de Ligt, Joshua Zirkzee, Leny Yoro and Manuel Ugarte broadly failing to live up to expectations so far.
United, who remain majority-owned by the Glazers, recorded a net loss of £113 million in their 2023-24 accounts and reported cumulative losses over the past five years of £370 million.
Short-term pain but will there be long-term gain?
A year ago Ratcliffe had promised a “journey to take Manchester United back to the top of English, European and world football, with world-class facilities for our fans”. “Work to achieve those objectives will accelerate from today,” he announced after initially completing an initial 27.7 per cent stake.
But what has followed has been intense short-term pain for what he hopes will prove long-term gain. Sir Alex Ferguson, who had helped to advise Ratcliffe closely on his plans for the club, then stepped down from a £2.1 million ambassadorial role in October.
There have also been tensions around funding for United’s charitable arm being hit and £40,000-a-year funding for the Association of Former Manchester United Players being cut. On the field, delight at an FA Cup final win over Manchester City papered over the cracks.
There is no suggestion that cuts at United are related to financial pressures at Ineos, which said on Tuesday that it had sought to renegotiate the deal with New Zealand Rugby and expressed regret that the matter is now the subject of legal action.
“Ineos has greatly valued our sponsorship of New Zealand Rugby, having contributed over USD $30 million (£24.25 million) to the teams in recent years,” said a statement.
“However, trading conditions for our European businesses have been severely impacted by high energy costs and extreme carbon taxes, along with much of the chemicals industry in Europe, which is struggling or shutting down. We are witnessing the deindustrialisation of Europe.
“As a result, we have had to implement cost-saving measures across the business. We sought to reach a sensible agreement with the All Blacks to adjust our sponsorship in light of these challenges.
“Unfortunately, rather than working towards a managed solution, New Zealand Rugby have chosen to pursue legal action against their sponsor. We remain in ongoing discussion with New Zealand Rugby.”
It is said United staff are yet to be informed about redundancy numbers but, as initially reported by The Athletic and Daily Mail, the club’s executive has resolved they are necessary.
The latest round of redundancies could eventually rise beyond 100. A review of the club launched since Ratcliffe took over remains ongoing. A total of 1,112 staff were on the United payroll before Ratcliffe completed his purchase. Senior figures cite an overriding objective to help United win again, which will require transformation on and off the pitch. A range of options remain on the table to find the right structure, insiders maintain.
On a tumultuous day at the club, it also emerged Jackie Kay, the long-serving head of team operations, will move on as part of Ineos restructuring. Kay, who has worked at the club since 1995, was informed last week that she will depart. As reported by The Times, she leaves as part of the performance overhaul led by Ineos head of sport, Sir Dave Brailsford.
One staffer, appalled at what is unfolding, said it felt like “the soul of the club is being ripped out”.
