Manchester United have informed Sir Alex Ferguson they will no longer commit to the annual multi-million-pound payments he’s received since retiring as manager in 2013, according to reports. In a face-to-face meeting with the club’s new football kingpin Sir Jim Ratcliffe, Ferguson was said to have learned he is the latest impacted by cost-cutting measures.
The 82-year-old, arguably United’s greatest legend, has served as a global club ambassador and club director since walking away from the dugout 11 years ago.
But he will reportedly stop receiving an annual salary beyond the end of the current season as part of Ratcliffe’s drastic efforts to balance the books at Old Trafford.
According to The Athletic, the cost-cutting process, which involved 250 redundancies across the club, highlighted Ferguson’s agreement.
It’s claimed that under the related party transactions in United’s 2014 accounts, the club stated that Ferguson signed an agreement to become a global ambassador on October 17, 2013.
That arrangement was worth £2.16million per year and is believed to have lasted since, which Ratcliffe deemed unsustainable.
So, the 71-year-old is said to have revealed his stance to Ferguson during a recent face-to-face meeting at Old Trafford.
The report adds that the matter has been dealt with amicably and that Ferguson will be welcome to attend games as a non-executive director.
While he is not a member of United’s official 10-person board, the legendary boss has had a ceremonial seat on the club’s football board since retirement.
The Red Devils’ majority owners, the Glazer family, have reportedly had no problem offering Ferguson payment over the past decade.
Co-chairmen Joel and Avram Glazer are said to believe the club has Ferguson’s 26 years of success to thank for the vast amount of revenue they generate today.
Ratcliffe has been ruthless with his financial management since securing a 27.7 per cent stake in February, hiring consultancy firm Interpath Advisory to review the club’s operations.
The budgeting process has heavily impacted United staff, which The Athletic state has saddened Ferguson, considering some were former colleagues and friends.
United have upset many by axing 250 jobs, removing senior executives’ use of club credit cards, denying free travel to May’s FA Cup final against Manchester City and cancelling the staff Christmas party.
It remains to be seen whether other ambassadors are under threat following Ferguson’s removal from the payroll.
But it’s another decision that is bound to divide opinion and another decision that emphasises the lengths Ratcliffe is willing to go to achieve his ultimate goal at Old Trafford.
