Manchester United has decided to end its annual multi-million-pound payments to legendary former manager Sir Alex Ferguson as part of efforts by the club’s new co-owner, Sir Jim Ratcliffe, to reduce operating expenses.
The payments were made to Ferguson for his role as a global club ambassador and non-executive director. This change is part of broader financial cutbacks implemented by Ratcliffe’s Ineos group.
At 82 years old, Ferguson, who retired in 2013 after leading Manchester United through its most successful era, has continued to receive a substantial salary in his post-managerial roles. However, according to a report by Adam Crafton of The Athletic, Ratcliffe has informed Ferguson about the decision to stop the payments to help cut costs. Despite this change, Ferguson will keep his position as a non-executive director and is welcome to attend games at Old Trafford.
The report stated, “Ratcliffe told Ferguson that the club is 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 approved these payments to Ferguson, recognizing his lasting impact on the club’s legacy and value. Sources close to Joel and Avram Glazer indicated that they believed Ferguson’s influence was crucial for the club’s global appeal, which is why they supported the financial arrangement after his retirement.
Since acquiring a 27.7% stake in Manchester United in February, Ratcliffe has taken charge of football operations and started implementing various cost-cutting measures. In July, the club cut 250 staff positions based on recommendations from the consultancy firm Interpath Advisory. Other measures included ending free travel for staff to the FA Cup final, withdrawing club credit cards from senior executives, and canceling the employee Christmas party.
These cost-saving measures come even as Manchester United invested around €240 million in summer transfers, although the club is currently struggling, sitting 14th in the Premier League and winless in the Europa League.
Reflecting on Ferguson earlier this year, Ratcliffe said, “I don’t think he has been encouraged to get involved, but he is still very thoughtful about the club and 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.”
