INEOS’ First Year at Manchester United: A Year of Relentless Cost-Cutting and Strategic Hiring and Firing

As the calendar turned to December in the Manchester Suite at Old Trafford, chief executive Omar Berrada addressed approximately 600 club staff with a sobering message, nearly a year after Sir Jim Ratcliffe took command of the organization.

“I know it was a difficult year,” Berrada remarked. “And I can’t promise next year won’t be difficult too.”

British billionaire Ratcliffe, founder of petrochemicals giant INEOS, acquired a minority stake in Manchester United on Christmas Eve 2023, overseeing a year marked by a mix of highs, lows, and continuous turmoil.

On the positive side, United clinched the FA Cup by defeating city rivals Manchester City. However, the year was not without its challenges: extending head coach Erik ten Hag’s contract in July only to dismiss him by October; hiring and firing sporting director Dan Ashworth, a move that cost the club over £5 million ($6.3m); a controversial increase in ticket prices that spurred fan protests; and the elimination of a £2 million-per-year ambassador role for the legendary Sir Alex Ferguson.

To commemorate INEOS’ inaugural year with the club, The Athletic interviewed various confidential sources within the club to explore the measures implemented under Ratcliffe’s leadership, particularly concerning the men’s first team. Monday’s report by Charlotte Harpur examined the implications for Manchester United’s female players.

Among many insights, we can disclose:

• A growing apprehension regarding additional job cuts
• Any expenditure exceeding £25,000 requires approval above Berrada’s level
• Ratcliffe suggested big names such as Elon Musk or Jeff Bezos could help fund a new stadium
• The club is considering considerable increases in ticket prices
• Further cuts to the ambassador program and notable departures, including former CEO David Gill’s £1 million annual retainer
• An increased presence of INEOS executives in the daily operations at United
• Ruben Amorim’s uplifting address to staff
• Bruno Fernandes’ FA Cup final offer

In just 12 months under Ratcliffe’s management, it is evident he is committed to driving progress.

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Chocolate bars, ‘Project 150’ and INEOS’ cost-control initiatives

Ratcliffe quickly zeroed in on priorities at Manchester United. He emphasized restoring the team’s former glories on the field, aiming for competitiveness in the Premier League and Champions League, while expressing aspirations to renovate the club’s dilapidated stadium or, preferably, build a new 100,000-seat arena.

However, the primary day-to-day focus has revolved around cost management. Ratcliffe found United’s status as a loss-making entity unacceptable, with a deficit of £113.2 million by June 30. The initial agreement positioned Ratcliffe to assume sporting control, but it soon became apparent he needed to oversee financial operations to enhance on-field outcomes, hence broadening his responsibilities.

Despite being among the world’s most lucrative clubs prior to player trading and debt-related interest, Ratcliffe’s objective has been to reduce headcount from roughly 1,000 to 750. These extensive layoffs have reportedly left morale “on the floor,” according to several employees. Others contend that the staff understand Ratcliffe’s rationale and objectives. Yet, Berrada’s remarks suggested to many that additional job losses could occur in Year Two of INEOS governance.

Ashworth’s removal from the sporting director position after a lengthy gardening leave period following his departure from Newcastle United sent shockwaves throughout the organization, indicative of a climate where no one felt secure in their roles.

Consequently, some United staff are exploring alternative job opportunities; for example, a commercial director at another north-west club holds numerous applications from current employees of United.

Those acquainted with Ratcliffe characterize his obsession with staffing levels; he applies business strategies—successful in building his wealth—to United. Aiming for leaner operations to enhance efficiencies is his model, though some former colleagues worry this methodology may not translate effectively to football, which heavily relies on human elements as opposed to mechanical processes.

This emotional aspect was articulated by Ruben Amorim during the summit led by Berrada on December 2. His presence elevated spirits when he acknowledged the interconnection between on-field performance and overall morale. Amorim accepted accountability for the team’s shortcomings despite only being in his role for a month. “We haven’t been good enough,” he stated, marking the first admission of its kind from football personnel—reflecting a sector that has contributed to United’s cumulative £370 million losses from unsuccessful recruitment over the last five years—and the audience responded positively to his message.

Diving into a Q&A, Amorim humorously shared details about his pre-match rituals, which includes taking a sip from his water bottle and shaking hands with his assistant Carlos Fernandes.

Berrada engaged in various breakouts, personally connecting with employees about their roles. He previously held formal group “ideas” meetings to gather frontline perspectives about club operations and welcomed feedback; these discussions occasionally took unexpected turns, featuring recommendations such as increasing player loans to the Championship or providing bonuses if the first team secures silverware.

Berrada concluded by discussing “Project 150”—United’s plan to win the Premier League by 2028, coinciding with the 150th anniversary of the club’s inception.

Evidence of the new, frugal culture was palpable; golden envelopes were taped underneath only four seats, with contents that included small hampers from sponsors Cadbury’s and British designer Paul Smith, alongside complimentary chocolate bars for all attendees. Previously, gifts were lavish: a £500 Selfridges voucher, four hospitality match tickets worth about £1,000 a seat, or £1,000 worth of Paul Smith luggage.

Typically, December marked the much-anticipated office Christmas party for staff. Yet, under Ratcliffe’s command, this tradition was curtailed. Berrada’s announcement during a September staff meeting drew audible gasps, with one long-tenured employee exclaiming, “Wow,” signifying a collective sense of disenchantment following the earlier announcement of substantial layoffs.

The cancellation of the Christmas party led to widespread discontent, as it represented a missed opportunity for staff to enjoy a relaxed atmosphere and socialize, especially after a year dedicated to long hours and weekends. Moreover, staff reverted to mandatory in-office work five days a week, a shift from the previously more flexible working arrangements established during the pandemic. United once hosted festive afternoons at Old Trafford for staff and their families, complete with Santa Claus visits and activities.

It is estimated the cancellation of the Christmas celebration saved around £250,000, but insiders suggest the decision stemmed more from sensitivity towards those affected by recent layoffs than purely financial calculations.

Change arrived quickly. December 2023 featured an office gathering at Old Trafford, with complimentary drinks, live music, and street food; by year’s end, an announcement was made that Ratcliffe would acquire 25 percent of the club.

Following this transition, multiple executives, including Patrick Stewart and chief financial officer Cliff Baty, departed. As the restructuring unfolded, Berrada officially assumed control on July 13, just after the club witnessed four CEOs in a year—an unusual circumstance indicative of the tumult wrought by Ratcliffe’s reform agenda.

Meanwhile, Ashworth’s unexpected exit raised eyebrows among club personnel, as he had symbolized the club’s aspirations for sporting improvement before his dismissal, generating doubt about the decision-makers’ judgement. Nonetheless, senior members noted that clubs like Chelsea, Liverpool, and Manchester City underwent tumultuous changes when new ownership eventually led to success on the field. Certainly, uncertainty has plagued the club under the Glazers, and even those expecting glory realize the path ahead may be rocky.

On January 4, Ratcliffe introduced himself to staff at an all-hands meeting alongside Sir Dave Brailsford. Their straightforward communication regarding the aim to raise standards and refocus on football resonated with many, a stark contrast to the previous Glazer-era silence.

However, as Ratcliffe’s strategies became apparent—including an effort to dismantle a “jobs for life” mentality—emotional responses ensued. He countered that most workers do not enjoy such job security and sought to renegotiate any sense of entitlement within the organization.

The end of perks marked a significant turning point during the FA Cup final, where staff traditionally enjoyed complimentary tickets, travel, food, and lodging. Instead, employees were required to pay £20 for a bus trip to Wembley, solely receiving the ticket.

Surprised by these changes, Bruno Fernandes approached executives, volunteering to offset the additional costs personally, but was declined—suggested to be a strategic decision by the new regime.

Internal discontent simmered when the club funded off-season meals for players’ wives and girlfriends at San Carlo, highlighting disparities in how player welfare was prioritized.

In March, the hiring of Interpath Advisory—a financial restructuring firm—initiated a detailed exploration into club expenditures, particularly expenditures incurred by employees on business trips. Instances of lavish spending, including a $3,000 Las Vegas nightclub bill, surfaced, starkly contrasting Ratcliffe’s austere view. Many staff previously enjoyed corporate credit cards with generous allowances for wining and dining clients, but these opportunities have dramatically tightened under Ratcliffe’s leadership.

Consequently, employees must now implement cost-saving strategies, such as utilizing split-ticket methods to minimize travel expenses. In a particularly awkward turn during pre-season, limited credit card spending led to an embarrassing situation where executives could not initially settle a substantial restaurant bill, requiring them to split across multiple cards.

Whether these stringent cost-cutting measures will impact future sponsorship and revenue streams remains uncertain as key deals, such as sleeve and training kit sponsorships, approach renewal deadlines.

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The financial shift from Glazer control to INEOS oversight

The tightening fiscal dynamics extend beyond the commercial sectors; the attention to detail displays itself across various departments. For example, matchday agency staff now dine in less desirable locations, with enhancements to stewards’ bonuses removed, and Ratcliffe highlighted areas for improvement around Carrington, even dubbing an IT office “a disgrace” (unbeknownst to him, it was a MUTV studio).

Ratcliffe’s meticulous control also affects Berrada, where his expenditure authorization caps at £25,000, necessitating oversight from either Roger Bell or Rob Nevin for any higher expenditures.

Significant discussions transpired regarding the funding of the former United players association (AFMUP), which costs about £26,000 annually. Considerations to slash funding for the disabled supporters group (MUDSA) from £40,000 to £20,000 have also been floated. MUDSA traditionally secures funding through ticket sales to dinners, and questions have arisen over a perceived “double bubble.”

Simple purchases, like bulk canteen orders, now require higher-level approvals, and supplies as fundamental as beans have reportedly run out in the press suite.

The transition to INEOS leadership from Glazer management has been remarkable. Nevertheless, their relationship is described as amicable, with sources suggesting the Glazers are content to let Ratcliffe dictate the agenda, contingent on their expectation that he may eventually acquire their remaining shares.

The potential for any pre-arranged agreement to purchase Glazer shares is limited by regulatory disclosure requirements due to the club’s listing on the New York Stock Exchange. Recently, Ratcliffe invested the final third of his additional $300 million above purchase price, thereby increasing his share to 28.94 percent, the first external investment into United’s bank since the Glazers assumed control in 2005. This milestone garnered a warm reception when Ratcliffe presented Bruno Fernandes with a shirt marking his 250th appearance before a Premier League match against Leicester City.

Ratcliffe has openly expressed his desire to acquire the Glazers’ shares. The SEC filing from January delineated Ratcliffe’s initial offer to purchase 60 percent of the Glazers’ Class B Shares with a structured plan to acquire the remaining 40 percent over three to five years.

Such a seemingly harmonious relationship might falter should the Glazers sense hesitation from Ratcliffe to invest further; they maintain “drag-along rights” that would allow them to coerce Ratcliffe to sell his shares to any prospective purchaser after a specified period.

In the interim, the Glazer siblings—especially Joel and Avram—have found comfort in Ratcliffe’s presence, believing it shields them from fan scrutiny.

A significant point of contention resides in the future of Old Trafford. Ratcliffe seems unwavering in his intent to construct a new stadium, counter to Joel’s existing interest in refurbishment projects that lacked significant momentum. Understanding how to finance a facility from scratch, likely exceeding £2 billion, remains unclear amidst ongoing discussions on enhancing the infrastructure around Old Trafford.

Previous reports from The Athletic indicated that United had deliberated raising ticket prices and selling naming rights as revenue-raising approaches. Moreover, the club has engaged in multiple discussions with Bank of America regarding potential loans for funding purposes.

Close sources express skepticism about the Glazers permitting Ratcliffe to invest his own funds into the project for greater equity. Current debt holders also have governance over any new borrowing, while Ratcliffe might consider selling part of his INEOS stake to supply funds if immediate returns from United remain elusive. Discussions with the UK government regarding public funding for surrounding facilities have also taken place.

With Ratcliffe’s ownership now under INEOS rather than Trawlers, the vehicle he initially established to facilitate the purchases, any investment he opts to make should proceed more seamlessly. Collette Roche, United’s chief operating officer, has become increasingly integral to the new stadium initiatives, recently taking on responsibilities surrounding club operations.

Prior to acquiring United shares, Ratcliffe explored private financing options, including the prospect of securing investments from influential figures such as Elon Musk or Jeff Bezos. It’s reported that Ratcliffe considered both individuals might find United’s allure appealing, with Musk’s valuation exceeding $486 billion in 2024 and Bezos holding an estimated wealth of $246 billion. However, details about the success of these discussions remain unclear.

It seems supporters will likely bear some financial burden for any infrastructural advancements. Current feasibility assessments for United involve the potential for ticket pricing increases, although nothing has been finalized, with assurance from the club that fans will have a voice in these discussions. Nonetheless, significant backlash is anticipated over proposed hikes, particularly in response to Ratcliffe’s unilateral actions to elevate the price of unsold seats to £66 without concessions for seniors or children.

While the club asserts that this price increase affects only three percent of tickets, it was notable that seats for the January 16 match against Southampton featured some concessions due to ticket returns.

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Leadership Evolution and Growing INEOS Influence

Behind the scenes, INEOS’s presence at United is increasingly evident. While Brailsford and Blanc are the most recognizable figures, James Morton, the professor who manages the INEOS X program, has made frequent visits to Carrington, including observing Amorim’s initial training session.

Additionally, Josh Thompson, an INEOS Sports project manager focusing on club logistics, regularly occupies the directors’ box during matches.

Martyn Hawkins, a former finance director from City Football Group, has also been sighted in those seats. Currently operating a consultancy business, he has not publicly acknowledged involvement with United. Sam Erith—interim performance director—is another CFG veteran, having overseen sports science at Manchester City for 11 years.

Gareth Anderson, the INEOS Acetyls CFO, has become more visible at United as well, working on implementing Interpath Advisory’s recommendations. Recently, it was disclosed that Gary Hemingway, projects director at INEOS, will assume oversight for stadium responsibilities at Old Trafford.

Tensions between the old and new management styles are evident in the ambassador program. Ferguson’s removal has prompted a drop in his presence at the club, and more cuts are anticipated for former players involved in hospitality efforts. The Glazers recognized the brand value in utilizing the club’s history through such connections, but Ratcliffe views these expenditures as largely extraneous and believes resources should be focused on enhancing on-field performance.

Alumni players have noted complications in accessing the directors’ box, potentially linked to the exit of Kate Nixon, who previously managed access protocols. She was let go on the eve of redundancy announcements along with Gill’s lucrative retainer. This transition, while amicable, underscored the overarching cost-cutting measures.

The elimination of a traveling staff member for ticket verification during European away games has raised concerns about ticketing integrity, with some suggesting that this fosters ticket resale abuse.

Part of Ratcliffe’s decision to dismiss Ashworth stemmed from his perceived inability to act swiftly and decisively on reductions within the football department. Ashworth did facilitate the departure of deputy sporting director Andy O’Boyle, who had advocated for improved data usage before his exit.

Ultimately, recruitment presents a significant area for cost savings. The high-profile acquisition of Antony for £86 million exemplifies transactions that INEOS cannot justify. Despite aiming to sign Antony during a pressured summer 2022 transfer window, scouts endorsed this option over Raphinha, who transitioned from Leeds United to Barcelona for £55 million that summer.

Attention to agency fees is also paramount, particularly regarding inflating sums involved in deals with Joshua Zirkzee and Leny Yoro, facilitated by notable agents Kia Joorabchian and Jorge Mendes.

While Ratcliffe remains reticent about the January budget, profit and sustainability regulations impose constraints on club expenditure. The broader outlook suggests a quiet winter transfer window. However, it’s worth noting that the sums spent on Ten Hag’s termination and Amorim’s hiring amount to notable figures. Amorim asserts his commitment to stay and urges postponing judgement until further developments unfold.

(Top photos: Getty Images; design: Eamonn Dalton)