Ineos make decision on £40m Man United deal initially struck by David Gill

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With the transfer window now closed, Ineos have quickly turned their attention to Manchester United’s commercial deals.

Ineos have been firing on all cylinders since their takeover at Old Trafford. Manchester United did some great business over the summer which has drastically improved Erik ten Hag’s squad.

There have also been sweeping changes behind the scenes with Sir Jim Ratcliffe wasting no time to make key appointments in the boardroom.

Omar Berrada was among the first to join as the club’s new CEO, while Dan Ashworth and Jason Wilcox arrived as directors to allow Ten Hag to focus on coaching.

United also decided to keep hold of Christopher Vivell after his part in the successful summer window as interim director of recruitment.

There has also been a focus on cost-cutting under Ineos with Ratcliffe controversially cutting 250 jobs to help balance the books.

Man United extend commercial partnership

Cutting costs and increasing revenue has been at the forefront of Ineos’ mind since the takeover.

The Premier League’s Profit and Sustainability Rules shrunk United’s budget this summer and increasing income streams is the only way to navigate the regulations.

United are certainly in a healthy financial position with the club expected to announce record turnover in excess of £700m for 2023-24.

That figure is helped by United’s staggering commercial and sponsorship income, and Ineos have now decided to extend one of the club’s longest-running commercial partners.

United announced on Tuesday that they have extended their longstanding partnership with DHL – the club’s official logistics partner.

The partnership was initially struck in 2011 and The Guardian reported that it was worth £40million across four years.

United’s former chief executive David Gill finalised the deal and said at the time that the DHL deal “breaks new ground in the English game” after they became the club’s training kit sponsors.

Man United are a commercial powerhouse

Regardless of the drop in success since Sir Alex Ferguson’s departure, United have grown to become a commercial powerhouse and that will not stop anytime soon.

The Red Devils generated a whopping £303million in commercial revenue in their 2022-23 accounts – including sponsorship and merchandise.

READ MORE: Five clues that show how £2bn Sir Jim Ratcliffe project will transform Man United

United’s record-breaking deal with Adidas makes up a large portion of the club’s commercial revenue as well as the £60million-per year Snapdragon sponsorship deal.

It is the one area of the club that Ineos need to maintain rather than improve. Hopefully it frees them up to focus more on the footballing department.