Manchester United part-owner Sir Jim Ratcliffe has appointed restructuring firm Interpath Advisory to analyse the club’s finances, according to the Daily Mail.
The club will undergo a major cost-cutting exercise that involves several employees losing their jobs,
This move comes amidst pressure on the club to comply with the Premier League’s Profit and Sustainability Rules (PSR).
Interpath’s review is already underway. They will work with United to scrutinise all aspects of the club’s spending. The primary goal is to free up resources for investment in Erik ten Hag’s squad.
United’s recent financial results show a rise in staff costs. It rose to £95.1 million in the second quarter of 2023/24 compared to £77.3m the season before.
United employ over a thousand employees compared to Liverpool (900), Tottenham Hotspur (750), Manchester City (720), and Arsenal (700).
Ratcliffe believes this surge is hindering the club’s ability to spend in the transfer window.
This financial burden prevented the club from signing new players in the January transfer window despite loaning out Jadon Sancho and Donny van de Beek.
The club is dangerously close to breaching the PSR limits, and United want to avoid sanctions.
Interpath will employ a two-phase approach to the review.
The first focuses on non-personnel costs like travel expenses and external contracts. The second will come later this year and delve into employee expenditure.
This will likely be followed by substantial job cuts, with around 250 employees possibly losing their jobs as the club targets a 20-25% staffing reduction.
Even United staff have acknowledged the need for cost-cutting measures following a period of expansion, particularly in the commercial and digital sectors under the Glazer family’s ownership.
Ratcliffe’s past ventures in sports through INEOS are known for their lean operations. The coming months will likely see a period of restructuring at United, with potential job losses impacting the club’s overall size.
