Manchester United football club will cut the funding it provides to its charitable arm as part of a cost purge overseen by Sir Jim Ratcliffe, its new billionaire shareholder.
Sky News has learned that the Premier League club plans to inform the Manchester United Foundation of its intention to cut the benefits it offers – which amounted to almost £1million last year – from of 2025.
Sources close to the matter said a substantial part of the club’s support for the Foundation would be withdrawn, although Old Trafford insiders insisted on Sunday it would continue to provide “significant” support to the charitable wing.
The decision was reportedly made by club management to make these reductions, with the Foundation expected to be informed of the extent of the reductions in the coming weeks.
In 2023, the club has paid the MU Foundation almost £175,000 for charitable services, which includes managing the distribution of signed merchandise to people raising money for charitable causes.
Manchester United also provided gifts in kind worth £665,000 last year, which included the use of the Old Trafford pitch and other facilities, as well as free club merchandise and use back-office services such as club IT capabilities.
The MU Foundation works in local communities around Manchester and Salford to engage with disadvantaged and marginalized people.
Its projects include Street Reds, which is aimed at 8-18 year olds, and Primary Reds, which works in school classrooms with 5-11 year olds.
She also organizes hospital visits to support children with life-threatening illnesses.
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The revelation of the latest cost-cutting target for Sir Jim’s Ineos Sports Group, which now owns almost 29% of Manchester United, comes just a day after The Sun revealed an association set up to facilitate relationships between former players , would see funding for its clubs removed.
A similar step has been taken over funding for the club’s disabled supporters group, while hundreds of full-time staff have been made redundant in recent months and costs have been cut in most areas of club activity.
Those close to the club expect further cost-cutting measures to be introduced as early as next month.
A club source said they remained “proud of the work the Manchester United Foundation does to increase opportunities for vulnerable young people in Greater Manchester”.
“All areas of club spending are being reviewed due to continued losses.
“However, significant support for the Foundation will continue. »
Sir Jim has pumped $300 million of his multibillion-pound fortune into Manchester United, although he will need to raise much more than that to fund the redevelopment of Old Trafford or a new stadium.
Last year the club, listed on the New York Stock Exchange, lost more than £110 million, with significant interest payments totaling tens of millions of pounds a year needed to service its debt.
The men’s first team has enjoyed an alarming run of results under Ruben Amorim, named to succeed Erik Ten Hag in the autumn.
United have lost three of their last four matches – bar a derby win at Manchester City – and sit 14th in the Premier League table.
Mr Amorim acknowledged he could face the same fate as Mr Ten Hag unless results improved.
Dan Ashworth, recruited this summer from Newcastle United FC as sporting director, left after just five months.
Manchester United have refused to comment officially on proposed cuts to funding for their charitable arm.