One of the oldest football clubs in the world, Manchester United has been taking significant cost-cutting measures in order to reduce financial loss and increase the profit under the ownership of Sir Jim Ratcliffe. Despite being one of the richest football clubs in the world, with a market valuation of € 771 million as per the latest report by Deloitte Football Money League, Old Trafford is facing severe financial strain.
Over the last five years, Manchester United has been facing losses of £373m, prompting the owner and the club management to take significant steps in order to reduce the cost of operations. The club initiated cost-cutting measures in early 2024 after Sir Jim Ratcliffe acquired a 27.7% stake in Manchester United through his company. In the summer of 2024, the club decided to lay 250 employees at the Old Trafford as part of their effort to reduce expenses.
Manchester United has taken another significant step to reduce financial loss, which would put several employees in a difficult position.
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As per the latest cost-cutting measures, Manchester United has decided to lay off 200 employees, which was sanctioned by Sir Jim Ratcliffe. This would increase the total of layoffs to 450 employees, making it one of the most workforce reductions in the history of club football as part of its effort for financial restructuring. The Old Trafford holds the record for being the largest workforce in the history of the Premier League, employing over 1,000 staff members across various departments. The latest round of layoffs reduce Manchester United’s workforce, raising concerns about its long-term operational efficiency.
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Another significant cost-cutting measure by Manchester United management that would disappoint other staff members at Old Trafford is shutting down the staff canteen. The staff canteen would offer lunch to all workers at the club free of charge, providing an essential benefit for employees working for long hours. This significant measure by the club would affect numerous workers who relied on free meals during their shifts. According to the United, scrapping free lunch would save them 1 million pounds a year.
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Speaking on significant cost-cutting measures by Manchester United, the CEO Omar Berrada stated that the club is looking to put themselves in the strongest position across men’s and women’s teams. He also expressed regret for those affected by measures taken by the club.
“We have a responsibility to put Manchester United in the strongest position to win across our men’s, women’s and academy teams.” Omar said in a statement.
“We are initiating a wide-ranging series of measures which will transform and renew the club. Unfortunately, this means announcing further potential redundancies and we deeply regret the impact on those affected colleagues. However, these hard choices are necessary to put the club back on a stable financial footing.” he added.
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Speaking on significant cost-cutting measures by Manchester United, the CEO Omar Berrada stated that the club is looking to put themselves in the strongest position across men’s and women’s teams. He also expressed regret for those affected by measures taken by the club.
“We have a responsibility to put Manchester United in the strongest position to win across our men’s, women’s and academy teams.” Omar said in a statement.
“We are initiating a wide-ranging series of measures which will transform and renew the club. Unfortunately, this means announcing further potential redundancies and we deeply regret the impact on those affected colleagues. However, these hard choices are necessary to put the club back on a stable financial footing.” he added.
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Manchester United is planning to reduce the bonuses paid to the employees this year and bringing in performance-related pay. The club is also planning to cut down staff in their London office and move more of those from Old Trafford to Carrington training ground. Meanwhile, United will continue to offer lunch for the employees at Carrington, with catering arrangements likely to remain unchanged for the rest of the season.
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In November last year, Manchester United decided to increase the ticket prices for the home matches as part of their efforts to increase the club’s profit after facing a revenue loss of £113.2 million in the 2023/24 financial year. In December 2024, United decided to scrap concessionary tickets for children and pensioners, setting a minimum cost of £66 for a home match. Manchester United management is putting their efforts to increase annual savings between £40 to 45 millions.
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Manchester United’s financial loss has somewhat been attributed to the club’s performance on the field, as they have struggled to secure consistent success in domestic and European competitions. After last winning the Premier League in 2013 under the leadership of Alex Fergusson, Manchester United has failed to recapture its former dominance, experiencing managerial changes and inconsistent performances across various seasons. Also, it’s been over 16 years since they last won the Champions League title.
