Sir Jim Ratcliffe has defended his decision to cut approximately 200 more jobs at Manchester United, emphasizing that the move is necessary to prevent the club from facing severe financial difficulties. The co-owner believes that these measures, while tough, are essential for ensuring the club’s long-term sustainability.
Over the past three years, the club has recorded losses of £300m, and without decisive action, it would have run out of cash. A crucial $300m (£240m) injection from Ratcliffe last year helped stabilize the situation, with the final $100m installment paid in December, increasing his stake in the club to 27.7%. Without that investment, the club’s cash reserves would have been critically low.
The financial challenges led to a strategic review being launched in November 2022, with the board considering options such as new investment, a sale, or other transactions. Since securing his stake, Ratcliffe has focused on cost-cutting measures to bring financial stability. Last summer and autumn, around 250 employees were made redundant, and this latest round will see roughly 200 more jobs cut.
Despite the backlash, Ratcliffe is convinced that these steps will help transform the club into a financially stable and competitive force within two years. The club’s financial troubles have been attributed to years of poor management, and Ratcliffe is determined to restructure operations to strengthen its position in English and European football. The long-term vision includes investing in better facilities for both players and supporters.
As part of the cost-cutting drive, several high-profile ambassadorial roles have been affected. Sir Alex Ferguson, the club’s most successful manager, will no longer serve as an ambassador, a role that previously earned him £2m annually. Former players Bryan Robson, Andy Cole, and Denis Irwin are also expected to see reductions in their ambassadorial salaries. In another significant change, Jackie Kay, who has been with the club for three decades as head of team logistics, is set to lose her job.
Additionally, smaller but symbolic changes have been implemented. The traditional £100 Christmas bonus given to administrative staff has been replaced with a £40 Marks & Spencer voucher.
On the transfer front, the club’s financial struggles have significantly impacted recruitment. The only major winter signings were Patrick Dorgu from Lecce for £25.1m and Ayden Heaven from Arsenal for around £1.5m. The upcoming summer transfer window is expected to be similarly challenging, with any significant squad reinforcements dependent on generating funds through player sales.
These tough measures are designed to ensure Manchester United remains financially viable while rebuilding towards a stronger future. The aim is to create a sustainable model that allows the club to compete at the highest level while avoiding the financial pitfalls of the past.
