Details of face-to-face meeting between Ratcliffe & Ferguson at OT shared as Man Utd axe legend
Manchester United have axed their multi-million pound annual commitment to former manager Sir Alex Ferguson as INEOS continue their cost-cutting programme, according to The Athletic.
Sir Jim Ratcliffe-led INEOS have been cutting costs and reducing the number of employees at Man United, and the Red Devils legend is the latest to be affected.
Ratcliffe and Ferguson held a face-to-face meeting at Old Trafford, and the former manager was told the club are seeking to reduce costs and are no longer prepared to sustain his payments.
Ferguson was retained as a global club ambassador and club director after he retired in 2013 following 26 years in charge, and he has been paid an annual salary since.
The former boss signed an agreement with Man United on October 17, 2013, becoming a global ambassador and receiving £2.16 million for his services, a deal which has continued for over a decade.
However, he will no longer be paid but will remain a non-executive director at Man United and continue to be allowed to attend games if he chooses to.
The matter has been dealt with amicably but whether Ferguson will continue to regularly attend home and away games in the directors’ box remains to be seen.
Former Man United players working with roles at the club already have concerns for their own futures after the cut backs.
They have noticed the removal of credit cards and chauffeur-driven cars, and whether the latest move from INEOS will impact other ambassadors of the club remains to be seen.
Over 250 people are expected to lose their jobs at Man United after Ratcliffe hired a restructuring firm to begin a cost-cutting exercise back in March, and Ferguson is one of the unfortunate victims.
The club announced in July that they posted a net loss of £71.4m during the first quarter of 2024, and Ratcliffe wants to ensure further losses are prevented going forward even if it means cutting some jobs.
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