Following confirmation with an early-morning report from The Athletic, Ineos has continued its cost-cutting measures in ending Sir Alex Ferguson’s ambassadorial contract with Manchester United.
Ferguson, the most successful manager in the club’s history, was retained as a global ambassador and club director at the end of his managerial tenure in 2013.
Per Adam Crafton’s report, “the only official description of Ferguson’s services as an ambassador to the club can be seen in their 2014 accounts under the related party transactions section,” in which he received £2.16 million for his services following his signature on October 17, 2013.
Although the legendary scot is not a member of United’s official board, he has retained a place on the football board since this time- similar to that of the late Sir Bobby Charlton and David Gill.
Despite approaching his 83rd birthday in December, the Glasgow man remains a regular feature in the director’s box for first-team fixtures.
However, following a face-to-face meeting with Sir Jim Ratcliffe, Ferguson has been advised that the club will no longer sustain his payments beyond the end of the season as a measure to continue their ongoing plan to reduce expenditure.
Why have Ineos taken the decision?
It will come as a surprise to many that the 13-time Premier League-winning manager has received this news, while others will be more understanding when considering the financial implications.
Ineos has undergone a public exercise to reduce costs via any measures possible following close to two decades of hideous mismanagement by the Glazer family.
Moving back to Crafton’s piece, senior members of the American family “believe much of the value that the club continues to generate is owed to Ferguson’s work and legacy, and therefore did not begrudge him a handsome settlement following his retirement.”
It follows the July revelation that Ratcliffe’s team intended to cut 250 jobs as part of a cost-cutting expedition recommended by Interpath Advisory – a consultancy firm tasked with an interval review of the club’s business and operational outgoings.
Furthermore, additional cuts have seen the removal of free travel for staff to the memorable FA Cup final victory against Manchester City and credit card facilities for senior executives.
At this time, it remains unclear if other ambassadors will receive similar news, but – given the continued nature of the financial squeeze in the North West – anything is possible at this stage.
With names like Bryan Robson and Andy Cole retaining links to the club, an air of uncertainty now looms around Old Trafford.
Although reports state the decision is entirely amicable, the Theatre of Red has reached out for comment regarding the ongoing measures in Manchester.
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