Manchester United’s new co-owner INEOS is moving quickly to implement more drastic changes behind the scenes.
The Athletic disclosed that the club’s non-football employees have been given the option to accept voluntary redundancy and have a week to do so, only three days after United won the men’s FA Cup at Wembley.
This is just another instance of how Sir Jim Ratcliffe and his group of INEOS Sport executives are putting their desired reforms into practice, whether it is attempting to attract remote workers back into the office or changing the interim CEO that was in place.
Ratcliffe’s petrochemicals behemoth INEOS’s $1.3 billion (£1.02 billion at current rates) acquisition of slightly more than 25% of United was approved in February, giving it a substantial voice in managing the entire company rather than simply the football operations division.
The Athletic breaks down the latest move…
What power does INEOS have over how Manchester United are run?
At first, INEOS was just supposed to oversee United’s football operations, but it has since expanded its sphere of influence to include business matters as well. One notable example is the appointment of Jean-Claude Blanc as acting CEO until INEOS hire and former Manchester City chief football officer Omar Berrada takes over in mid-July.
Sources briefed on the matter, speaking anonymously to preserve relationships, characterize the decision to effectively offer staff voluntary redundancy as a “management decision” that was approved by both ownership groups, including the Glazer family, who still retain overall control over the club.
The Glazers’ apparent lack of concern about substantial changes at INEOS is attributed to their faith in Ratcliffe and his executive group, which includes Blanc and Sir Dave Brailsford, the former head of the wildly successful Team GB cycling program.
Since it is a policy change, the football club’s leaders would have been informed of it, but board approval was not required for it to be put into effect.
What specifically has been suggested to United employees?
The non-football staff of the club were given the option to accept a “voluntary resignation” on Tuesday afternoon. They will have until Wednesday, June 5th, to make their decision.
Employees at the Old Trafford stadium, United’s Carrington training site on the southwest suburbs of Manchester, and the club’s central London office will be impacted by the offer, which excluded all scouts and playing staff members.
The yearly bonus, which is typically given later in the year, will be awarded to those who accept it.
In order for them to get paid for that time, they would also need to finish their notice period and work from the office rather than from home.
Why did INEOS make this decision?
It is no secret that INEOS feels United employs too many people and that their employment is disproportionately large in comparison to other English clubs.
Following the approval of its minority stake in February, the business engaged Interpath Advisory, a consulting firm, to examine the club’s overall business and operational expenses.
United hopes to save money by cutting back on its workforce of more than 1,000 employees. This can therefore assist them in more effectively adhering to the financial rules set forth by UEFA, the organization that oversees European football, as well as the Premier League. They must examine the expenses related to the club and determine where money is being spent in order to determine how much they may spend on signing players during the official summer transfer window, which opens in two weeks.
The ratification of INEOS’ minority interest sparked an internal review process, although Ratcliffe, Brailsford, and other INEOS employees had plenty of time to consider how they could enhance not only the playing department at United but also the operational departments.
After purchasing a company, INEOS has a track record of analyzing revenues and expenses to determine how to increase the former and improve the latter.
Which jobs is INEOS looking to eliminate, and how many?
Using the club’s financial statements for the year that concluded on June 30, 2023, United employs 1,112 people on average every month. From 1,035 in 2022 and 983 in 2021, this is an increase.
According to United’s annual filing, the average number of employees is 131 for both men’s and women’s football, 192 for the football department’s technical and coaching staff, 167 for the commercial team, 104 for the media department, and 518 for administrative and other roles. The club hired “about 2,517 temporary staff” to work at Old Trafford on matchdays, according to their annual accounts.
INEOS has not disclosed the number of workers it expects to exercise the “voluntary resignation” option, but it is estimated that as many as 20% of workers may choose to quit.
What other measures has INEOS introduced?
Ratcliffe told employees that they could no longer work from home during an all-hands meeting at the beginning of May and gave them instructions to return to the office as of today, June 1. Following the Covid-19 outbreak, employees at United, along with many other firms, have seen a reduction in office hours and an increase in flexibility in their working environment.
Patrick Stewart, the club’s temporary CEO before Blanc and someone who will be leaving at the end of the season, disagreed with INEOS’s intentions, which were seen as radical in certain quarters.
Asking workers to pay £20 to ride a club-provided coach to last weekend’s men’s FA Cup final versus Manchester City at London’s Wembley Stadium was another cost-cutting effort that backfired with the workforce.
Club employees had previously received free tickets to these games, which INEOS has continued to honor. However, on this occasion, they were required to pay for their transportation and were not given any food during the 400-mile (320-kilometer) round-trip trip between Manchester and the capital.
In an effort to save money, employees’ company credit cards have also been taken away. In addition, United’s end-of-season awards dinner, which was supposed to take place on May 20, was canceled so the men’s team could focus on the FA Cup final, which was held five days later. However, United’s women’s team was unaware of the decision until it was made public. The team won their FA Cup final at Wembley on the same day that word spread about the celebration being canceled. Later, United expressed regret for how their women’s players learned that the event had been canceled.
What has the reaction been?
Some United employees who support INEOS’ actions point out that the club needs change and that tough decisions often need to be made when a new firm takes over operations.
There is a claim that INEOS’s entry and the introduction of new standards are necessary since the Glazers allowed United to stagnate for years.
That opinion will not hold for everyone, though, since some staff members feel their efforts have gone unappreciated and become irate when told to report back to work five days a week. The degree to which they choose to accept the club’s invitation to depart will indicate how strongly they react.
How does United stack up against other teams?
As of June 30, 2023, Liverpool recorded 1,008 employees, an increase of three over the previous year’s numbers. Of these, 701 are employed in “administration, commercial, and other,” while 238 are coaches, managers, and players.
According to Arsenal’s report for the year that concluded on May 31, 2023, the company employed 689 persons on average each month, 163 of whom were listed as playing and training staff. From 595 in 2022, this average monthly number has increased.
To put United’s size in perspective, Brentford, at the other end of the Premier League, employs 243 people on average each month, including 129 players and training staff. This is an increase from 190 during the previous fiscal year.
The Premier League winners Manchester City, who have now won the title four times in a row, employed an average of 520 people in the year that ended on June 30, 2023, including players and football staff (201). This is less than half of United’s 1,112 employees and is a decrease from 549 the year before.
However, City is a part of the City Football Group, an umbrella organization made up of several clubs, which employs more people.
(Top photo: Nick Potts/PA Images via Getty Images)
