Manchester United has cut costs under the ownership of Sir Jim Ratcliffe’s Ineos group, ending its annual multi-million-pound payments to legendary former manager Sir Alex Ferguson.
Ferguson, 82, had continued to receive a substantial salary as a global club ambassador and non-executive director since his retirement as manager in 2013.
However, Ratcliffe informed Ferguson of the decision to stop the payments, citing the club’s aim to reduce expenses.
According to a report by Adam Crafton of The Athletic, “Ratcliffe told Ferguson that the club is seeking to reduce costs and is no longer prepared to sustain his payments. United sources said that the matter has been dealt with amicably.”
Ferguson will retain his role as a non-executive director and is welcome to attend games at Old Trafford.
Previously, the Glazer family, the club’s majority owners, had sanctioned the payments to Ferguson, acknowledging his enduring contribution to the club’s value and legacy.
Sources close to Joel and Avram Glazer suggested they believed Ferguson’s influence and history were crucial to the club’s continued global appeal, supporting the financial settlement provided to him after his retirement.
Ratcliffe, who acquired a 27.7% stake in Manchester United in February, has initiated various cost-cutting measures.
In July, 250 staff positions were cut, and perks such as free travel to the FA Cup final and club credit cards for senior executives were eliminated.
Despite investing around €240 million in summer transfers, Manchester United has struggled this season, currently sitting 14th in the Premier League table and remaining winless in the Europa League.
Ratcliffe praised Ferguson earlier this year, saying, “I don’t think he has been encouraged to get involved, but he is still very thoughtful about the club and he has an immense amount of experience.
“He really understands the values and traditions of the club and what it’s all about. He’s still fiercely competitive, Alex Ferguson.”
