Man United land extra '£10m' after controversial Ratcliffe move - Stefan Borson
Manchester United’s decision to make 250 members of staff redundant is likely to be more about optics rather than a cost-saving exercise.
That is the view of former Man City financial advisor Stefan Borson, who exclusively told Football Insider Man United could save about £10million annually if the average wage and associated costs of those people leaving the club are around £40,000 a year.
It has been revealed the Premier League giants have made the decision as part of a determination to slash costs and scrap some “non-essential“ activities.
Sir Jim Ratcliffe has been looking to transform the way Man United operate on and off the pitch since securing a 27.7 per cent stake in the club in February this year.
There are believed to be up 1,150 full-time members of staff working for the club, but it hasn’t been confirmed yet which areas the cuts will be made in.
Man United staff decision unlikely to be cost-related
Borson believes the decision can’t purely be about money when the savings likely wouldn’t even cover the cost of some of their players’ salaries.
He told Football Insider: “I think a lot of it is a kind of private equity optical approach to making a change in the business.
“If you were to work on the basis of £40,000 all in costs on average for those 250 people that are leaving, including social security, desks costs and all of those things, it’s only £10million a year.
“That’s not even paying for Sancho’s wages. Optically it will make a difference. INEOS probably think United have become a bit bloated organisationally.
“I think it’s a bit less about the money that they are saving and more about actually getting the organisation a bit trimmer and leaner to go forward and bring in some new people.
“That could see them clear the desks of some people who have been there a long time and bring in some new talent.
“It just can’t be about pure pounds and pence when footballers are paid the salary of 250 people.”
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