Manchester United are exploring an early termination of their 10-year lease on London offices in Kensington, as part of Sir Jim Ratcliffe's cost-cutting measures. The club moved into the 23,000 sq ft space less than two years ago, but Ratcliffe's push to base most staff in Manchester has rendered the office too large and expensive.
United announced a 'transformation plan' last week, involving 150-200 redundancies, and committed to maintaining a London presence. However, sources indicate that moving out entirely, two years into the lease, is the most likely option, with downsizing also considered. The Kensington office is near Ineos headquarters in Knightsbridge, but this convenience is unlikely to sway Ratcliffe's focus on financial efficiency.
Ratcliffe has often used his Ineos offices for United business since buying a 28% stake 15 months ago. The club opened a London office 15 years ago, a trend followed by other northern clubs, but under Ratcliffe, the centre of gravity has shifted back to Manchester. The lease was signed before Ratcliffe's investment, so renegotiation will be required.
Ineos have similarly renegotiated deals elsewhere, cutting ties with Sir Ben Ainslie's America's Cup team and New Zealand Rugby, and discussing early termination of a partnership with Tottenham. United's cost-cutting also includes closing the staff canteen at Old Trafford and banning working from home, with some corporate boxes repurposed as temporary offices.
