When INEOS took over the reins at Manchester United in December, it was agreed they would gain full control over the sporting operation at Old Trafford but the last few months has seen a large swing in power dynamics at the club.
The Athletic have taken a deep dive into how this has come to be.
When the deal to acquire 25% of the club in December was announced, it was assumed that this would only extend as far as sporting control and, sadly, the Glazers would still dominate decision making in the financial sphere.
In this regard, the appointments of Sir Dave Brailsford and Jean-Claude Blanc to the board, two men with huge histories in sport, were logical.
However, this narrative quickly changed when at an “all-staff meeting at Old Trafford on the 24th of January, interim chief executive Patrick Stewart informed employees that INEOS and the Glazer family had reflected on previously agreed arrangements and told colleagues the scope of INEOS’ work may in fact far be more substantial.”
This new remit could be seen in the fact INEOS would take a large role in deciding the future of Old Trafford, with Sir Jim Ratcliffe releasing statements over his desire to build a “Wembley of the North”. Consequently, a new taskforce was set up to discuss the future of the stadium, with INEOS very much behind its birth.
INEOS have already hired a new CEO in Omar Berrada, who will begin on the 13th July when his gardening leave at Manchester City ends.
Interestingly, it was also announced this week that Patrick Stewart, United’s interim chief executive after Richard Arnold resigned, will leave the club, with Blanc filling in until Berrada is available: “The inevitable speculation, therefore, is whether a strain had enveloped the relationship between Stewart and INEOS and if Stewart may have been reluctant to implement the pace of change his new employers truly desire.”
Cliff Baty, who was United’s chief financial officer, “however, is arguably the more interesting exit, at least in the fact that his replacement Roger Bell was until recently the chief financial officer of INEOS Sport. This tells us that the Glazer family have now outsourced the financial and football management of the club to people in INEOS’ circle. Bell posted on Linkedin at the turn of the year he was retiring after 40 years with INEOS to pursue a ‘change in direction’.”
Whilst the Glazers remain, and do have the greater shareholding, meaning they could take back control when they want, they seem happy to delegate to the petro-chemicals company.
“There is nothing more symbolic than claiming control of United’s finances; meaning INEOS now has its own man handling approvals on player trading, contract renewals and all money going in and out of the club. There does not appear to be any Glazer-appointed stopgap to intervene on behalf of the majority owners.”
All in all, it looks a good deal for the Americans as if the moves are successful, it will increase the value of the club they own but at the same time, were things to tailspin, they can easily blame the new guys.
“Since November, the chief executive Richard Arnold, the football director John Murtough, the CFO Baty and the interim CEO have all fallen by the wayside. Phil Lynch, the club’s CEO of digital products and experiences (also a member of the ELT) has also resigned.”
All of these staff members were closely linked to the Glazers and their exits indicate a systematic approach by INEOS to strengthen their control at Old Trafford.
Back in December, it was announced that Brailsford would carry out an audit on the club and most believe we are now seeing the ramifications of his work.
“In the words of one employee, a Game of Thrones has developed behind the scenes as INEOS has sought to overhaul United’s operations in recent months.”
Previously sporting appointments such as the agreement with Dan Ashworth to become the new sporting director, effectively left John Murtough surplus to requirement and he too decided to move on to pastures new.
“In recent months, INEOS sought to shake up United’s working environment. They are unhappy, for example, that the club made £648.4m in revenue for the year end 30th of June 2023, only to still contrive to lose over £42m. INEOS believes a revamp of the club’s method of recruiting footballers will go a long way to improving this but the consultancy Interpath was also enlisted to review costs across the club.”
“This has led to significant decisions that impact certain staff members; such as one to take company credit cards away from staffers, while last week staff members discovered they would have to pay £20 if they wished to travel on a club-provided coach to the FA Cup final against Manchester City at Wembley on the 25th May.”
These financial decisions are examples of how INEOS have wrestled power away from the Glazers at the football club.
“As INEOS takes a sledgehammer to the Glazers’ executive team, there does not appear to be too much concern about whether they upset people along the way.”
In fact some feel that the new owners may even proactively want people to be looking elsewhere. “INEOS, for its part, believes the shock therapy it is implementing at Old Trafford is necessary; it believes the atmosphere has been too comfortable, where people are happy in their jobs even when the club is losing money off the pitch and losing games on the field.”
In essence, “the future has to be different from the past” and INEOS seemingly winning the power struggle at the club may not bear fruit, but at least the path trodden previously will certainly differ in the present and the future.
Want to be the first to hear breaking Man United news? For carefully selected, crucial updates, join our WhatsApp channel: https://bit.ly/United-Breaking-News.
