Manchester United part-owners, INEOS have terminated Sir Alex Ferguson’s multi-million-pound contract.
The 82-year-old managed the Red Devils for 26 seasons, winning 38 titles at Old Trafford.
Ferguson became a global ambassador for the Manchester club when he decided to leave coaching in 2013. But, according to The Athletic, Sir Jim Ratcliffe’s company has decided to end the former manager’s link with the club.
According to Mirror UK, the agreement said to be worth in excess of £2million-a-year and in place since October 2013, has now been terminated by Ineos.
It was gathered that Both Sir Jim Ratcliffe and Sir Alex Ferguson reportedly met this week to try to reduce the club’s costs.
At that meeting, they concluded that Manchester United would not continue to pay him beyond this campaign, thus cutting his multi-million-pound contract.
The meeting was allegedly amicable, and there is no issue between the club and Ferguson, who remains a non-executive director of the club.
Ratcliffe acquired a minority stake in his boyhood club back in December and has overseen some off-field changes, including a shake-up of the club’s backroom structure and a number of redundancies after outlining plans to axe 250 members of staff.
SIR ALEX FERGUSON has amicably accepted the decision to axe his multi-million pound salary from Manchester United.
Red Devils co-owner Sir Jim Ratcliffe has cut costs by removing the legendary boss from his lucrative ambassadorial role.
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Manchester United will no longer pay Sir Alex Ferguson his £2million per year
Manchester United will no longer pay Sir Alex Ferguson his £2million per year
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It is understood that Fergie received the decision well during a meeting with Sir Jim Ratcliffe
It is understood that Fergie received the decision well during a meeting with Sir Jim Ratcliffe
Ferguson will still act as a non-executive member of the board and be welcome at matches.
Just five months after leaving in 2013, the Scot signed a £2.16m-per-year deal to become a global ambassador and a club director.
But that arrangement will now seize at the end of the season as Fergie, 82, steps away from a number of time-consuming duties.
SunSport understands that it was an amicable decision between both parties.
Fergie accepted the termination of his paid role with no rancour.
Ratcliffe met with the Scot in person to tell him that cost-cutting measures will include no longer paying him his seven-figure salary.
The INEOS CEO and his team have embarked upon a root-and-branch financial review after taking a 27.7 per cent stake in the club in February.
Last month, it was revealed he is letting go of 250 employees at the club.
United have been making losses for some time and have been forced to exercise cost saving measures across the board to strengthen their position.
The Red Devils’ latest figures take total losses over the past five years to more than £370m, according to BBC Sport.
Man Utd board’s EIGHT-HOUR London crunch talks and what it means for Erik ten Hag
Ineos’ cost cutting methods have also seen private chauffeurs and company credit cards axed.
Staff and the players’ Wags had to pay for their own transport to the FA Cup final win over rivals Manchester City in May.
And other perks like lunch, accommodation, extra tickets and a post-match party were scrapped.
Fergie, who turns 83 in January, regularly attends games home and away, most recently a 0-0 draw at Aston Villa on October 6.
The ex-Aberdeen boss won 38 trophies including 13 Premier League titles and two Champions Leagues during his 27 years as Man Utd manager.
What we know about the ‘new’ Old Trafford
MANCHESTER UNITED plan to build a new stadium rather than redevelop Old Trafford.
The decision was made after a number of fact-finding missions to other stadiums including the Bernabeu and Nou Camp.
The cost of the project is expected to be a staggering £2billion.
A capacity of 100,000 is expected.
It is felt that a club of United’s standing should have a new state-of-the-art facility.
The new stadium will be built on land adjacent to the Red Devils’ current home.
United are looking to not only build a stadium but regenerate the area of Trafford where the ground will stand.
There had been plans to KEEP Old Trafford rather than demolish it, and use it as a scaled down second venue.
However, it’s looking increasing likely that it will in fact be entirely demolished.
The club consulted with 30,000 fans about what to do and believe there is roughly a 50-50 split on staying or moving.
The club have appointed the architects Foster + Partners to come up with a “masterplan”. The company were behind Wembley Stadium.
Old Trafford has been United’s home since 1910.
The target is for completion by 2030.
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