In a startling development at Old Trafford, Manchester United’s staff are feeling the pinch of Sir Jim Ratcliffe’s aggressive cost-cutting measures, with the latest reports revealing that even portion sizes in the club’s canteen have been reduced. This move is part of a broader strategy implemented by INEOS to streamline operations and reduce expenditure across all levels of the club.
Since acquiring a significant stake in Manchester United just over a year ago, Sir Jim Ratcliffe has embarked on a ruthless campaign to slash operational costs. The British billionaire’s approach has been far-reaching and, at times, controversial, affecting everything from high-level executive decisions to the day-to-day experiences of staff members.
The Extent of Cost-Cutting Measures
Ratcliffe’s cost-cutting measures have been extensive and, in some cases, deeply unpopular:
- Hundreds of staff members have been made redundant
- Sir Alex Ferguson’s lucrative ambassadorial contract was terminated
- The policy of free travel for staff to attend finals has been scrapped
- Ticket prices have been hiked, sparking protests from supporters
- Up to 200 more employees may face redundancy to free up funds for squad reinforcement
Zero-Based Budgeting: Counting Every Penny
At the heart of INEOS’s financial strategy is a “zero-based budgeting” policy, where every single item of expenditure is meticulously scrutinised to eliminate waste. This approach has led to some eyebrow-raising situations within the club.
James Ducker of The Telegraph provides insight into the extent of these measures: “The group property services team at Manchester United are accustomed to undertaking mundane jobs. As the hidden heroes responsible for the maintenance and upkeep of Old Trafford, Carrington and the club’s other buildings, there is little they have not seen or heard. More recently, though, their tasks have extended to having to individually count cartons of screws at their disposal to ensure they are not over-ordering.”
The Canteen Conundrum
Perhaps the most visible and widely felt change has been in the club’s canteen. Staff have reported smaller portion sizes and less variety in the food offered. The situation has become so tense that caterers are reluctant to offer extra helpings for fear of reprimand. Even bulk orders of vegetables for the Carrington training ground now require special approval.
Stationery Shortages and Credit Card Cancellations
The penny-pinching extends to office supplies, with one employee jokingly remarking that it would be easier to “smuggle drugs” than to find an envelope or stamp to send a letter. In a particularly striking example, a large stationery order at Carrington saw Sellotape returned as it was deemed unnecessary at the time.
Ratcliffe’s cost-cutting measures have also hit staff finances directly. Company credit cards have been cancelled, forcing some employees to use personal funds for work-related expenses. While these costs are eventually reimbursed, the monthly repayment schedule can leave staff out of pocket for weeks.
Impact on Staff Morale
The cumulative effect of these measures has been a significant drop in staff morale. Stewards, who once received a £50 weekly bonus, now make do with a paper certificate praising their efforts. The sense of financial insecurity and the constant scrutiny of expenses have created an atmosphere of uncertainty among employees.
Executive Level Changes
Even top-level executives aren’t immune to the new financial regime. CEO Omar Berrada, formerly of Manchester City, now has his sign-off authority capped at £25,000. Any expenditure above this amount requires approval from the ownership group, highlighting the extent to which INEOS is controlling the purse strings.
The Bigger Picture
While these cost-cutting measures may seem extreme, they reflect the challenging financial situation at Manchester United. The club has reported losses exceeding £370 million over the past five seasons, and with the team currently languishing in 15th place in the Premier League under manager Ruben Amorim, the pressure to balance the books while improving on-field performance is immense.
As Manchester United navigates this period of financial restructuring, the question remains: will these drastic measures lay the foundation for a more sustainable future, or will they further erode the club’s ability to compete at the highest level? Only time will tell if Sir Jim Ratcliffe’s approach will yield the desired results both on and off the pitch.
