Sir Alex Ferguson has become the most high-profile victim of Sir Jim Ratcliffe’s ruthless cost-cutting at Manchester United after the club’s legendary manager lost his £2million-a-year contract as a global ambassador.
Ratcliffe informed Ferguson of his decision in a face-to-face meeting at Old Trafford, bringing to an end his 38 years as a paid employee at United after this season.
Sources insist the meeting was entirely amicable and that 82-year-old Ferguson, who will keep his title as a non-executive director, remains a close friend of the club who will always be welcome at Old Trafford.
But the decision once again demonstrates Ratcliffe’s determination to drive down costs after United last month announced net losses for the fifth year in a row.
The new co-owner has carried out a savage redundancy programme leading to the loss of 250 jobs – with Ferguson the biggest sacrifice by some distance.
Sir Jim Ratcliffe (left) has reportedly axed a £2.16m contract with Sir Alex Ferguson
Ferguson was reportedly told in a face-to-face meeting the contract would be terminated
Ferguson was seen with Man United’s new hierarchy at the club’s last match at Aston Villa
The most successful manager in United’s history has maintained close ties with the club since his retirement from the dugout in May 2013 after subsequently signing a deal worth £2.16m-a-year to be a global ambassador.
For the last 11-and-a-half years, Ferguson’s duties have included representing United all over the world, as well as match-day hospitality with the club’s partners and sponsors at Old Trafford, and appearing on promotional videos.
The Scot has been a regular spectator at home and away games, apart the period after he suffered a life-threatening brain haemorrhage in 2018 and following the death of his wife, Lady Cathy, a year ago.
He has often been seen sitting next to Ratcliffe in the directors’ box and chatting with the Ineos owner since he paid £1.3billion to acquire 27.7 per cent of the club.
The Glazer family were happy to let Ferguson continue in his well-paid role, partly as an acknowledgement that his success on the pitch, winning 38 trophies over more than 26 years, brought huge financial benefit to the club.
But Ratcliffe has taken a more businesslike approach and decided that United can no longer afford to pay such a high price for Ferguson’s services when the rest of the club is feeling the squeeze.
Ferguson, who won 38 trophies at Man United, became a club ambassador upon retirement
The legendary boss remains a club director and is regularly seen in the stands at matches
As well as stressing that there is no acrimony on either side surrounding the decision, sources also say that it is one of a number of time-consuming responsibilities that Ferguson will step away from as he prepares to turn 83 in December.
For the time being, he will retain his place on the club’s football board, a largely honorary body that included Sir Bobby Charlton before his death last year.
Besides the redundancy programme, which could save United up to £45m-a-year, Ratcliffe has presided over a round of cost-cuts that has included withdrawing corporate credit cards and chauffeur-driven cars for executives, and free travel for employees to the FA Cup final in May.
It’s understood that this year’s staff Christmas party has also been cancelled, with sources accepting that it would be in bad taste after so many colleagues lost their jobs.
