Explained: INEOS’ bid to cut non-football staff at Manchester United

New co-owner INEOS is continuing to make sweeping changes behind the scenes at Manchester United, and is doing so in a hurry.

Just three days after United lifted the men’s FA Cup at Wembley, The Athletic revealed the club’s non-football staff have been offered the chance to take voluntary redundancy and have a week to accept the offer.

It is just the latest example of Sir Jim Ratcliffe and his team of INEOS Sport executives implementing the changes they want to see, be it trying to get employees who work from home back at the office or replacing the previous interim chief executive with a different interim CEO.

Ratcliffe’s petrochemicals empire INEOS’ $1.3billion (£1.02bn at current rates) deal for just over a quarter of United was ratified in February, and it now has a significant say in the running of the whole business — not just the football operations arm of the club.

The Athletic breaks down the latest move…

What power does INEOS have over how Manchester United are run?

Initially, the plan was for INEOS to run only United’s football operations, but it has extended its influence to the business side, most notably appointing Jean-Claude Blanc as interim CEO until former Manchester City chief football officer Omar Berrada, an INEOS hire, takes over in mid-July.

The decision to effectively offer staff voluntary redundancy is being described by sources briefed on the matter, speaking anonymously to protect relationships, as a ‘management decision’ and has been agreed across both ownership groups, meaning the Glazer family — who remain in overall control of the club — also signed off on it.

The Glazers being relaxed about INEOS making sweeping changes is noted as a reflection of the confidence they have in Ratcliffe and his leadership team, including Blanc and Sir Dave Brailsford, former head of the hugely successful Team GB cycling operation.

Because it is a policy change, it would have been shared across the leaders of the football club but it was not something that needed board approval to be implemented.

Exactly what has been proposed to United staff?

On Tuesday afternoon, the club’s non-football employees were offered the chance to take what the club described as “voluntary resignation” and have until June 5, next Wednesday, to decide what to do.

The offer excluded all personnel who are scouts or on the playing staff, so it will impact people who work at the Old Trafford stadium, United’s Carrington training base on the south west outskirts of Manchester and the club’s central London office.

Those who take it up will be entitled to the payment of their annual bonus, which would ordinarily be paid later in the year.

They would also be expected to complete their notice period, working from the office not at home, if they are to receive their salary for that time.

Why has INEOS taken this step?

It is no secret INEOS believes United have too many employees and that the workforce is bloated compared to other English clubs.

After its minority investment was ratified in February, the company hired consultancy firm Interpath Advisory to review the business and operational costs all across the club.

The hope is that by streamlining the 1,000-plus workforce, United will make savings. This, in turn, can help them better comply with the financial regulations of both the Premier League and UEFA, European football’s governing body. To know how much they can spend on signing players in the summer transfer window, which officially opens in two weeks’ time, they need to look at the costs associated with the club and work out where money is being spent.

INEOS’ internal review process started as soon as its minority investment was ratified but Ratcliffe, Brailsford and other INEOS staff had already had plenty of time to think about what they could do to improve not just the playing side of things at United but also the operation departments.

INEOS has a history of reviewing the revenues and costs after buying a business, and looking at how it can boost the former and better manage the latter.

How many jobs does INEOS want to cut and where?

The club’s accounts for the year ended June 30, 2023 say United have an average of 1,112 monthly employees. This is up from 1,035 in 2022 and 983 in 2021.

United’s annual filing further states there are, on average, 131 men’s and women’s football players, 192 people in the (football) technical and coaching department, 167 in the commercial team, 104 in the media section, and 518 working in administration and other areas. Those annual accounts also show the club engaged ‘approximately 2,517 temporary employees’ to work on matchdays at Old Trafford.

INEOS has not put a figure on how many people it hopes will take the “voluntary resignation” option, although it is anticipated up to 20 per cent of employees could decide to leave.

What other measures has INEOS introduced?

During an all-hands meeting at the beginning of May, Ratcliffe informed staff that they could no longer work from home and ordered them back to the office, starting from today — June 1. In the aftermath of the Covid-19 pandemic, United staff — like many other businesses — have spent less time in the office, with their working environment becoming more flexible.

INEOS’ plans, viewed as radical in some quarters, received pushback from Patrick Stewart, who was interim CEO before Blanc and who will be leaving the club at the end of the season.

Another cost-cutting measure, which proved unpopular with staff, was to ask employees to pay £20 to travel on a club-provided coach to the men’s FA Cup final against Manchester City at London’s Wembley Stadium last weekend.

Bruno Fernandes and Erik ten Hag celebrate United’s FA Cup win (Ash Donelon/Manchester United via Getty Images)

Club staff have traditionally been offered a free ticket to such games — something INEOS continued to honour  — but this time they had to contribute financially towards their travel and were also not provided with any food on the journey between Manchester and the capital, a 400-mile (320km) round trip.

Company credit cards have also been taken from staff members in a bid to cut costs, while United’s end-of-season awards dinner, scheduled for May 20, was cancelled so the men’s side could concentrate on the FA Cup final five days later. United’s women’s side, however, who won their FA Cup final at Wembley on the day the news broke of the bash being scrapped, were not notified of the decision until it became public. United later said they regretted the manner in which their women’s players first discovered the event had been cancelled.

What has the reaction been?

Those sympathetic to INEOS’ measures, including some United staff members, note that change is needed at the club, and that it is common when a new company starts running a business for difficult decisions to be made.

There is an argument that the Glazers have allowed United to stagnate for years, and INEOS coming in and injecting new standards is what is needed.

However, that view will not be universal, with other employees feeling their hard work has not been recognised or frustrated at being ordered back into the office five days a week. The strength of their reaction will be shown in how many decide to accept the club’s offer to leave.

How do United compare to other clubs?

Liverpool’s accounts for the year ended June 30, 2023 say they have 1,008 employees, which is up by three on 2022. Of those, 701 are categorised as working in ‘administration, commercial and other’, with another 238 being players, managers and coaches.

Arsenal’s filing for the year ended May 31, 2023 details that the monthly average number of people they employed was 689, with 163 of those being noted as playing and training staff. This average monthly figure is up from 595 in 2022.

At the other end of the Premier League, and to highlight the size of United’s operation, for the year ended June 30, 2023 Brentford had a monthly average of 243 employees, which includes the players and training staff (129), and is up from 190 in the previous financial year.

Manchester City, the now four-times-in-a-row Premier League winners, had an average of 520 employees — including players and football staff (201) — in the year ended June 30, 2023, which is less than half of United’s 1,112 and is down from 549 in the previous year.

City are, however, part of a multi-club umbrella organisation, City Football Group, which has additional personnel.

(Top photo: Nick Potts/PA Images via Getty Images)