Manchester United will eliminate free lunches, bonuses, and jobs in order to increase earnings

The Premier League soccer team, Manchester United (MANU.N), announced on Monday that it will lay off an additional 150–200 employees as part of a restructuring aimed at turning a profit following five years of losses.

The club claimed the proposal builds on the 250 positions that were eliminated last year.

After British businessman Jim Ratcliffe acquired a 25% share in the club last year and took over soccer operations, the team has been reorganizing and reducing expenses in an attempt to turn things around on the field.

The 20-time English champions lost for the sixth consecutive year in September, missing out on the European Champions League tournament, which is very profitable.

“We have seen financial losses for the last five years in a row. According to a statement from CEO Omar Berrada, “this cannot continue.”

In order to save more than 1 million pounds ($1.26 million) annually, the club’s restructuring plan calls for ending complimentary meals for employees in the Old Trafford cafeteria, a person close to the club told Reuters.

“All of the club’s leadership will be based in Manchester, and some employees will relocate from Old Trafford to the new training facility at Carrington near Manchester,” the insider stated.

According to the source, executive incentives will be given out at a lower rate this year before switching to a new plan that is more closely tied to the team’s sporting and financial success.

The club is in discussions with MUF over the extent of its commitment, and the source stated that its charity contributions will be directed towards the Manchester United Foundation and the Manchester United Disabled Supporters’ Association.

According to the source, the club will no longer make contributions to other nonprofit organizations.

According to the foundation’s website, season ticket holders and online donations helped raise 608,000 pounds in 2023–2024 for the educational and community outreach activities targeted at youth.

“At the end of this process, we will have a more lean, agile and financially sustainable football club,” Berrada explained.

Last season, Manchester United came in at number eight in the league. In the Premier League, the squad is presently ranked 15th.

Manchester United acknowledged difficulties last week with the release of their second-quarter adjusted net deficit of 6.2 million pounds ($7.83 million).

The stock was up 0.5% on Monday after losing around 16% so far this year.

When Ratcliffe bought a $1.25 billion investment a year ago, supporters were thrilled, but following a subpar performance on the field, that euphoria has subsided over the last 12 months.