Manchester United’s most successful manager, Sir Alex Ferguson might not be associated with the English club anymore. According to a report by The New York Times, Manchester United’s new part-owners, INEOS, are starting a cost-cutting plan by stopping the annual payments to Sir Alex Ferguson.
Since retiring from management in 2013, Ferguson has taken on the roles of global club ambassador and club director, receiving an annual salary for his services. Reports state that the only official mention of his role is in the club’s financial statements, which indicate he earned £2.16 million for his ambassadorial position from October 17, 2013. This arrangement lasted for over ten years.
Discussion on cost reduction
In a face-to-face meeting at Old Trafford, INEOS co-owner Sir Jim Ratcliffe informed Ferguson about the need to cut costs, which includes stopping his payments. The conversation was friendly, and Ferguson will still be a non-executive director at the club and is welcome to attend games.
Changes in the club’s structure
Ferguson has been a director on the club’s football board, a mostly ceremonial position. Other prominent figures, like Sir Bobby Charlton and former CEO David Gill, have also been part of this board. However, Ferguson is not on the official board, which comprises the Glazer siblings and INEOS representatives. Ferguson continues to attend Manchester United’s matches regularly, both at home and away. At 82 years old, he is often seen in the directors’ box during games.
Glazers’ view on Ferguson’s legacy
The Glazer family, who are the majority owners of the club, have previously supported payments to Ferguson, believing that his legacy greatly enhances the club’s ongoing value. Unlike many former staff members, Ferguson has chosen not to publicly criticise the Glazers’ management.
Ferguson’s feelings on Job Cuts
Ferguson has expressed sadness regarding the job losses affecting his former colleagues at the club. Unfortunately, he will not receive payments from Manchester United after the current season ends. Since acquiring a 27.7% stake in the club in February, Ratcliffe has focused on reducing costs at Old Trafford. This includes staff layoffs and removing club credit cards for senior executives. The club has also cancelled its employee Christmas party.
Financial situation and future outlook
United’s financial position may worsen if the team’s performance does not improve under manager Erik Ten Hag, as a hefty settlement may be required if he is let go. In recent financial statements, the club anticipated annual savings of around £40 million to £45 million.
When Ratcliffe attended his first United game in January, he sat next to Ferguson in the directors’ box. Ratcliffe praised Ferguson for his vast experience and deep understanding of the club’s values and traditions, showcasing his ongoing passion for Manchester United.
