Manchester United’s new part-owners, INEOS, have intensified their cost-cutting measures by ending a multi-million-pound annual commitment to Sir Alex Ferguson, the most successful manager in the club’s history, according to The Athletic.
Following his retirement in 2013 after a remarkable 26-year reign in which he won 38 trophies, Ferguson continued to serve Manchester United as a global ambassador and club director, earning a substantial annual salary.
In the club’s 2014 financial accounts, under related party transactions, it was disclosed that Ferguson signed an agreement on October 17, 2013, to serve as a global ambassador.
For his services, he was paid £2.16 million ($2.82 million) annually, a deal that lasted for over a decade.
While Ferguson remains a club director on the football board – a position that has been largely ceremonial – INEOS has sought ways to reduce expenses.
The football board has previously included legendary figures such as the late Sir Bobby Charlton, former chief executive David Gill, and non-executive director Michael Edelson.
Ferguson, however, does not sit on the club’s official board, which now consists of the six Glazer siblings, INEOS co-owner John Reece, INEOS Sport chairman Rob Nevin, and two independent directors, Robert Leitao and John Hooks.
In a face-to-face meeting at Old Trafford, INEOS founder and CEO Sir Jim Ratcliffe informed Ferguson that the club could no longer justify sustaining his payments as part of the ongoing cost-cutting initiative.
Sources close to the situation, who spoke anonymously due to the sensitivity of the matter, said the conversation was amicable.
Ferguson, now 82, will continue as a non-executive director and is welcome to attend matches as usual.
The Glazer family, who retain majority ownership of Manchester United, had previously approved these payments to Ferguson.
Sources familiar with the views of Joel and Avram Glazer, the most prominent Glazer siblings involved with the club, suggest they believed much of United’s continued commercial success was built on Ferguson’s legacy, and they did not begrudge him his post-retirement compensation.
Notably, Ferguson has refrained from joining other former employees in publicly criticizing the Glazers’ management of the club.
Despite being saddened by the recent job cuts at Old Trafford, which have affected friends and former colleagues, Ferguson will no longer receive payments from the club beyond the end of the current season.
Ratcliffe, who acquired a 27.7% stake in Manchester United in February, initially gained control of the club’s football operations but expanded his influence over wider business and operational matters through further negotiations with the Glazers.
Determined to cut costs, Ratcliffe’s team informed staff in July of their intention to reduce the workforce by 250 jobs, following recommendations from consultancy firm Interpath Advisory, which was brought in to review the club’s finances.
Further cost-cutting measures have included the removal of club credit cards for senior executives, the elimination of free travel for staff to May’s FA Cup final against Manchester City, and the cancellation of the club’s annual Christmas party.
Despite these austerity measures, Manchester United was the Premier League’s second-highest spender during the summer transfer window, committing over £200 million on new signings.
However, the team has struggled on the pitch, sitting 14th in the Premier League as of early October.
The club’s financial situation could be further strained if results do not improve, as under-fire manager Erik ten Hag could require a substantial payout if he is dismissed in the coming weeks.
In their most recent financial accounts, Manchester United forecasted annual cost savings of between £40 million and £45 million, with implementation costs of around £10 million.
The club added: “Due to timing and other contractual obligations, the club expects to realize these savings over fiscal years 2025 and 2026.”
After agreeing to buy his stake in Manchester United, Ratcliffe attended his first game in person – a 2-2 Premier League draw against Tottenham at Old Trafford – where he sat alongside Sir Alex Ferguson in the club’s directors’ box.
“He was the first person I met when I went up there which I think was the second week of January and I had a meeting from 9am to 10am at his house and I left at 1pm,” Ratcliffe said about Ferguson in February.
“He never stopped.
“He’s got a lot of experience, a lot of stories to tell and a lot of thoughts about the club.
“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.”
Sir Alex Ferguson is one of several high-profile figures connected to Manchester United who serve in ambassadorial roles for the club.
Former United captain Bryan Robson, for instance, is currently scaling Mount Kilimanjaro in collaboration with the club’s charitable foundation as part of his ongoing duties.
Similarly, former striker Andy Cole is listed as an ambassador on his Instagram profile.
While it remains unclear whether INEOS’ budget cuts will directly affect other ambassadors, according to The Athletic, some former players involved with the club have expressed concerns about their positions.
They’ve noticed cost-cutting measures, including the removal of perks such as credit cards, chauffeur-driven cars, and job reductions in other areas of the club’s operations.
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