Ratcliffe set to tear up 10-year United agreement in latest cost-cutting plan – report

Manchester United co-owner Sir Jim Ratcliffe is reportedly considering terminating the 10-year lease agreement of the club’s London offices in Kensington.

Since Ratcliffe assumed operational control of United in February last year, he has gone about implementing a series of cost-cutting measures in a bid to return the Red Devils back to profitability.

Last summer, 250 employees were made redundant and last week, the club released a statement confirming hundreds of more staff are set to be axed in the coming weeks.

Ratcliffe also cancelled cup final perks for staff, cancelled the highly popular Christmas party and more recently, scrapped free lunches for employees at Old Trafford.

Noe, The Guardian reports that the INEOS billionaire is contemplating an early termination from a 10-year lease agreement at Kensington.

United moved into their plush offices less than two years ago, following the expiry of a 10-year rental agreement on another building in Mayfair.

According to Matt Hughes, Ratcliffe has decided that the vast majority of United’s staff should be based in Manchester, deeming the 23,000 sq ft space in Kensington as too large and expensive.

The report further states, “In announcing a “transformation plan” last week that will involve between 150 and 200 redundancies, United committed to maintaining a presence in London, but the Guardian has learned this will involve looking for new premises.”

“While downsizing at their current office is also being considered, it is understood that moving out entirely two years into a 10-year agreement is viewed as the most likely course of action.”

Even though United’s current office is less than a mile from INEOS’ headquarters in Knightsbridge, this isn’t a factor Ratcliffe is considering.

United occupy the entire top floor of the Kensington Building, which covers 16,000 sq ft, plus a 7,000 sqft roof terrace.

Ruben Amorim’s men are back in action on Thursday when they face Real Sociedad in the round of 16 of the Europa League.

Featured image Michael Regan via Getty Images

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