Manchester United has ended Sir Alex Ferguson’s ambassadorial contract, as part of further cost-cutting measures by the club’s new part-owners INEOS.
Ferguson, the most successful manager in the club’s history, retired in 2013. Since then, the Manchester United legend has continued assisting the club as a global ambassador, in which he is reportedly paid a multi-million annual salary.
As reported by the Athletic, a description of Ferguson’s ambassador role can only be found in the Premier League club’s 2014 accounts, which declare he became a global ambassador and received £2.16m for his services.
It is largely unknown what ‘services’ the former manager offers the club. However, supporters often see him watching matches from the director’s box at Old Trafford. Following this change Ferguson will remain as a non-executive director on the club’s board, not to be confused with the club’s official board.
While It is reported that Ferguson has agreed to leave amicably, this is an INEOS decision.
Since purchasing a 25% stake in the club, INEOS Chairman Sir Jim Ratcliffe has made a series of significant changes – all with the motivation of reducing operating costs. Some of these cost-cutting initiatives include the removal of credit cards and chauffeur-driven cars, as well as the loss of jobs elsewhere in the business.
It is well-known that the club is concerned about Financial Fair Play (FFP) regulations, with the club reporting in September net losses of £113.2m. However, this move may not have the desired effect INEOS believes it will.
The Glazer family, majority owners of Manchester United, has been accused of viewing the club as a ‘cash cow’, with some fans accusing the owners of making money from the team but not making investments.
Despite this criticism, the Glazers had previously taken the view that so much of the club’s revenue is generated thanks to Ferguson’s work and legacy.
It is yet to be seen how this change will affect the club, but from all of the recent changes around Manchester United, this seems to be the biggest indication of a new era.
When talking about his experiences with Ferguson in February, Ratcliffe said: “He was the first person I met when I went up there which I think was the second week of January and I had a meeting from 9am to 10am at his house and I left at 1pm.
“He never stopped. He’s got a lot of experience, a lot of stories to tell and a lot of thoughts about the club.
“I don’t think he has been encouraged to get involved but he is still very thoughtful about the club and he 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.”