AND SO IT BEGINS

Manchester United is to make 25 administrative staff redundant, but denied yesterday that the cost-cutting was a result of Malcolm Glazer's takeover of the club.

The figure represents about 5% of United's 450 non-playing personnel and the cuts will extend as far up as the executive committee, the level below the main operating board led by chief executive David Gill. All main departments will be affected, including IT, finance and marketing.

Three of Mr Glazer's sons - Joel, Bryan and Avi - joined United's board in June, but a club spokesman said the cost-cutting process had been initiated before their arrival. "The Glazers have not been substantively involved in the review at all," he said

Instead, United argued the review was prompted by the need to cut costs in the face of a drop in television revenues.

The club warned a year ago - when it was still a quoted company - there would be a £14m hit from lower TV income from both Premiership and Uefa Champions League games.

The latest three-year Premiership deal with Sky, which was worth less than the previous arrangement, came into force last season. Although 32 extra games are shown a season, a club hosting a televised game at 4pm on a Sunday is paid £343,000, down from £650,000 previously.

United's TV revenues have also suffered from its comparatively lowly third-place finishes in the last two Premiership seasons. TV receipts for the Premiership and Champions League are partly determined by the previous season's league position.

Prospects for this season's revenues would have been even worse if Everton had not been eliminated from the Champions League before the group stage: its qualification would have meant TV revenues for English teams would be split among five, rather than four, clubs.

Elsewhere Phil Townsend is quoted:

"We have carried out a review of costs and a review of structure and we believe the new arrangement is more efficient and is a better way of meeting the company's needs going forward.”

Whilst in the Mirror:

Malcolm Glazer's new regime ordered the job cuts after examining the club's financial position. Department heads were summoned by club secretary Ken Merrett to an emergency meeting at United's Carrington training ground to hear the news.

Merrett read a statement from chief executive David Gill.

An insider said: "He told them five per cent of the staff would have to go by the end of September. And he warned them another five per cent would have to go if there was not a significant improvement in the figures.

"There was absolute disbelief in the room. It was a complete bolt from the blue. Some of those affected have been with the club for a long time.

"This is one of the richest football clubs in the world and yet it is making people redundant.

"People are in a state of shock. And many fear it is just the beginning of major cutbacks."

[Editor: Already yesterday Reds were reporting it being impossible to get through to ticket office staff by phone. Meanwhile, 25 staff x average £30k = £750k per annum. Reported extra amount Rio Ferdinand was holding out for despite wages of £100k per week: £20k p/w.]