MANCHESTER UNITED TO CUT JOBS, BONUSES AND FREE LUNCHES – After a fifth consecutive year of financial losses
Manchester United will cut around 150-200 more jobs as part of an overhaul to return to profitability after five years of losses, the Premier League soccer club. The plan is in addition to 250 jobs removed last year.
The club has been restructuring and cutting costs since British billionaire Jim Ratcliffe took a 25% stake last year and took charge of soccer operations to try to revive its fortunes on the pitch. In September, the 20-time English champions reported its fifth straight annual loss as it missed out on the lucrative European Champions League competition.
CEO Omar Berrada said in a statement. “We have lost money for the past five consecutive years. This cannot continue,” The restructuring plan includes an end to free lunches for staff in the Old Trafford canteen to save more than 1 million pounds ($1.26 million) a year. Some staff will move from Old Trafford to the new training facility at Carrington near Manchester and all the club’s leadership will be based in Manchester.
Executive bonuses will be paid at a reduced rate this year and then transition to a revised scheme based more firmly on the club’s football and financial performance, the source added. The club’s charitable donations will be focused on Manchester United Foundation and Manchester United Disabled Supporters’ Association, the source said, and it is in talks with MUF about the level of its contribution. The club will stop donations to other charitable causes.
