Manchester United has ended its annual multi-million-pound remuneration to legendary former manager Sir Alex Ferguson, as the club’s new co-owner, Sir Jim Ratcliffe, looks to reduce operating costs.
The decision to stop the payments, which were made as part of Ferguson’s role as a global club ambassador and non-executive director, is part of broader financial cutbacks under the ownership of Ratcliffe’s Ineos group.
Ferguson, 82, who retired as Manchester United manager in 2013 after overseeing the club’s most successful era, continued to receive a substantial salary from the club in his post-managerial roles.
However, according to a report by Adam Crafton of The Athletic on Tuesday, Ratcliffe informed Ferguson of the decision, citing the club’s aim to reduce expenses. Despite the change, Ferguson will retain his role as a non-executive director and is welcome to attend games at Old Trafford.
The report said, “Ratcliffe told Ferguson that the club are seeking to reduce costs and are no longer prepared to sustain his payments. United sources said that the matter has been dealt with amicably.”
Previously, the club’s majority owners, the Glazer family, had sanctioned the payments to Ferguson, acknowledging his enduring contribution to the club’s value and legacy.
According to the report, sources close to Joel and Avram Glazer, the most prominent members of the family, suggested they believed Ferguson’s influence and history were crucial to the club’s continued global appeal. As such, they had supported the financial settlement provided to him after his retirement....Read Full Article [Click Here>]
Ratcliffe, who acquired a 27.7% stake in Manchester United in February, has since taken charge of football operations and initiated various cost-cutting measures.
In July, 250 staff positions were cut at the recommendation of consultancy firm Interpath Advisory. Additionally, the club eliminated free travel for staff to the FA Cup final against Manchester City, withdrew club credit cards from senior executives, and cancelled the employee Christmas party.
These changes come even as Manchester United invested around €240 million in summer transfers, though the club has struggled this season, currently sitting 14th in the Premier League table and remaining winless in the Europa League.
Ratcliffe, reflecting on Ferguson earlier this year, said, “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.”
