Manchester United has issued a stern warning to its staff, stating that they could face termination for leaking confidential information about the club. This announcement follows an increasingly critical inspection of the club's operations since Sir Jim Ratcliffe's entry as a part-owner last year, during which a number of cost-cutting initiatives have been implemented.
Earlier reports revealed that Ratcliffe is planning to reduce the workforce by over 100 positions, which comes on the heels of around 250 job cuts that took place the previous year. The club has also made several other financial adjustments, including the cancellation of complimentary coach travel for staff attending last year’s FA Cup final, reducing ambassadorial salaries, and imposing ticket price increases. Notably, Ratcliffe has ended the high-profile role of former manager Sir Alex Ferguson, which commanded an annual salary of £2 million.
Concerns have been raised regarding leaks of sensitive information, prompting Manchester United's CEO Omar Berrada to initiate an investigation into the source of these leaks. In a lengthy email to staff, Berrada emphasised that sharing confidential club details with external parties would be regarded as "gross misconduct", potentially leading to dismissal.
Berrada's communication reportedly stated, "Anyone disclosing information outside of the club is breaching their obligations of confidentiality, and we are very clear that this will be considered gross misconduct." He further noted that to better protect the club and its employees, additional measures are being established to prevent future leaks and identify any responsible individuals.
The club is clearly navigating a challenging financial landscape, with Berrada acknowledging the tough circumstances that many staff members face amid ongoing cutbacks. However, he also cautioned employees about external attempts to gather information, pointing out that "journalists are extremely well-versed in gathering information from multiple sources", and advised vigilance concerning contact via WhatsApp, social media, or phone.
The impending cost-reduction measures are expected to be discussed in an upcoming meeting scheduled for Monday, where further plans to streamline operations and enhance revenues will be outlined. The club has faced ongoing restructuring challenges under Ineos, Ratcliffe's investment company, as they seek to trim expenditures.
When Ratcliffe acquired a quarter stake in Manchester United early last year, the club had 1,112 staff members, significantly more than other top teams in the Premier League. In contrast, Manchester City, during that time, employed only 520. Despite achieving record revenues, the club has recorded losses amounting to £300 million over the past three years.
This week also saw the revelation that the dismissal of manager Erik ten Hag and sporting director Dan Ashworth cost United approximately £14.5 million. Following Ratcliffe's substantial investment of around £241 million intended for various developments, including improvements at Carrington, concerns regarding the fundamental issues at Old Trafford remain prevalent.
Among future considerations are the prospects of either constructing a new stadium with a capacity of 100,000 or undertaking a large-scale refurbishment of Old Trafford. The club aims to free up financially to enable new head coach Ruben Amorim to bolster the team, thus reinforcing a strategy to compete more effectively in the Premier League while ensuring compliance with the league's profit and sustainability rules.
Source: Noah Wire Services