Manchester United has announced plans to cut up to 200 jobs as part of a comprehensive transformation strategy aimed at enhancing the club's financial sustainability. The decision, confirmed on Monday, follows last year's redundancy of approximately 250 positions during the initial wave of cost-cutting measures after INEOS chairman Jim Ratcliffe acquired a stake in the Premier League club.
The club explained these job cuts are part of broader measures intended to create a more solid financial platform, allowing future investments in both the men's and women's football teams, youth development, and infrastructure improvements. "This will create a more solid financial platform from which the club can invest in men’s and women’s football success and improved infrastructure," Manchester United stated.
United CEO Omar Berrada expressed regret over the impact of the redundancies but emphasized the importance of these difficult choices. "Unfortunately, this means announcing potential redundancies, and we deeply regret the impact on those affected colleagues. These hard choices are necessary to put the club back on stable financial footing," Berrada remarked.
The announcements come at the heels of alarming financial reports, with the club suffering losses for five consecutive years since 2019. According to the latest accounts, underlining the severity of the situation, United paid about £14.5 million ($17.5 million) to part ways with former manager Erik ten Hag, sporting director Dan Ashworth, and other football staff. The club's new manager, Ruben Amorim, struggles to shift the team’s fortunes, currently placed 15th in the Premier League after their recent 2-2 draw with Everton.
Despite the financial turbulence, Manchester United remains influential, recently ranking as the fourth richest club globally, as per Deloitte's annual Football Money League. While the men's side grapples with performance issues, the women's team continues to excel, currently occupying second place in the Women's Super League.
Spearheading this restructuring effort, club officials have asserted their commitment to returning the club to profitability as the guiding principle driving the transformation plan. "We have lost money for the past five consecutive years. This cannot continue," Berrada reiterated, highlighting the stern reality facing the club.
New ticket prices have also been implemented, with the club facing backlash from supporters. Management has characterized these adjustments as necessary steps toward long-term financial resilience and recovery.
Overall, this significant round of job cuts is seen as pivotal. The club reiterated the necessity of positioning Manchester United for both short- and long-term success, not only to stabilize the finances but also to capitalize on competitive edges on the pitch. The responsibility to correct the path lies heavy upon the current administration, as they endeavor to align financial health with athletic aspirations.