Manchester United are considering an early termination of their 10-year lease for their London offices in Kensington as part of a broader cost-cutting strategy led by co-owner Sir Jim Ratcliffe. The club moved into the Kensington office space less than two years ago after the expiration of a previous lease in Mayfair. However, with Ratcliffe’s decision to centralize operations primarily in Manchester, the 23,000 square feet of office space in Kensington has been deemed too large and expensive for the club’s needs.
In the wake of the “transformation plan” announced last week, which includes between 150 and 200 redundancies, Manchester United confirmed they would maintain a presence in London. However, it seems likely they will seek new, smaller premises rather than continuing to occupy the existing Kensington building. While downsizing the current office space is a potential option, the more likely scenario involves moving out entirely, just two years into a ten-year agreement. United’s offices are located less than a mile from the headquarters of Ineos in Knightsbridge, but this proximity is not expected to affect Ratcliffe’s decision-making process. His focus remains on maximizing financial efficiency for the club.
Ratcliffe has often used Ineos’ offices for United business since acquiring a 28% stake in the club in 2023. For example, crucial decisions, such as the sacking of manager Erik ten Hag and the appointment of Ruben Amorim, were made during meetings at Ineos headquarters. The change in Manchester United’s office structure reflects a larger shift in the club’s operational model under Ratcliffe’s influence. Historically, United opened a London office 15 years ago, a move that was later adopted by other northern clubs like Manchester City, Liverpool, and Leeds. The intention was to transform the club into a commercial powerhouse, with the office serving as a base for senior staff, transfer negotiators, and corporate clients.
Under the leadership of former executive chair Ed Woodward, much of United’s senior management was based in London, and the office played a key role in negotiations and entertainment of clients and agents. However, following Richard Arnold’s succession as CEO, the club’s focus has shifted back to Manchester, with the Carrington training ground and Old Trafford emerging as the central hubs for operations. This shift gained further momentum following Ratcliffe’s investment, and the club signed the 10-year lease for the Kensington office before his involvement in May 2023. As a result, renegotiating the lease is now likely, particularly considering Ratcliffe’s ongoing focus on cutting costs.
In addition to the cost-cutting measures at Manchester United, Ratcliffe’s parent company, Ineos, has been making similar moves across its operations. Ineos has sought to reduce its own cost base by severing ties with several major partnerships. For instance, they have ended their involvement with Sir Ben Ainslie’s America’s Cup team, notified New Zealand Rugby of the termination of a sponsorship deal, and opened discussions with Tottenham Hotspur over ending their partnership agreement with Ineos Grenadiers. These efforts are part of Ineos’ strategy to reduce debts and streamline operations.
United’s transformation plan also involves changes in staffing. The club has confirmed that fewer employees will work in London, and some will be relocated from Old Trafford to Carrington due to limited space at the stadium. The club has also introduced other operational changes under Ratcliffe, including a ban on working from home. Some corporate hospitality boxes at Old Trafford have been repurposed as temporary office spaces on non-match days to accommodate the limited available office space at the stadium.
As Manchester United adjusts its operations in response to Ratcliffe’s cost-cutting measures, it seems increasingly likely that the club will part ways with its costly London office, seeking more modest and efficient premises to support its operations.
