Sir Alex Ferguson, who has been tied to Manchester United under an ambassadorial contract since 2013, will no longer receive payments from the club, as reported on Tuesday. INEOS owner and Manchester United investor Sir Jim Ratcliffe personally broke the news to Ferguson.
The Athletic broke the news of United parting ways with Ferguson. The Scottish former boss earned $2.8 million a year, and INEOS (and the rest of the United board) wanted that off their wage bill as part of cost-saving measures.
Ratcliffe and Ferguson spoke at a meeting held in Old Trafford, where he told the ex-coach about the situation. Ferguson is yet to comment.
In a face-to-face meeting at Old Trafford, Sir Jim Ratcliffe told Sir Alex Ferguson that Manchester United are seeking to reduce costs and are no longer prepared to continue his payments.
Ferguson became a global ambassador for #MUFC in October 2013 and received £2.16m per year… pic.twitter.com/so9IZavlky
— The Athletic | Football (@TheAthleticFC) October 15, 2024
Ferguson led Manchester United to 13 Premier League titles – making him the most decorated manager in English top-flight history. He left on a winning note in 2013, but since then, has been actively following (and supporting the Red Devils).
Ferguson, who is 82 years old, has been one of the regulars to attend matches at Old Trafford over the years – a true fan of the club that became a part of him.
Manchester United reported significant financial losses for the 2023-24 season, prompting the club to devise a plan to recover. As is common with large organizations, they started by laying off 250 employees—a controversial decision that drew criticism from many fans on social media.
The reasoning behind the move was simple. On one hand, the club continues to pay millions to players each month, while on the other, ‘non-essential’ staff—many of whom have dedicated their lives to the job and rely on their paychecks—were let go.
Sir Jim Ratcliffe made the final call on this matter.
Man United laid off 250 employees and vowed to cut costs as football club posts £113.2 million loss. https://t.co/ij3I6AsNzd
— FORTUNE (@FortuneMagazine) September 12, 2024
Despite the external criticism, Manchester United is confident in its strategy. The club’s long-term focus is on improving overall standards, including a $50 million overhaul of its Carrington training facilities.
Saving Sir Alex Ferguson’s $2.8 million annual salary, along with other cost-cutting measures, was agreed upon during a recent meeting held during the ongoing international break.
