INEOS Implements Cost-Cutting Measures at Manchester United, Ending Long-Term Agreement with Sir Alex Ferguson...

• At nearly 83, Sir Alex Ferguson is stepping back from several responsibilities, marking a shift in the club's leadership dynamics and signalling a new era for Manchester United under INEOS's stewardship.
• Sir Jim Ratcliffe, as part-owner, is reshaping the club's financial management and operational structure, having already initiated plans to reduce staffing levels and cut other costs while maintaining investment in player transfers.
• INEOS has begun significant cost-cutting measures at Manchester United, including the termination of Sir Alex Ferguson's lucrative ambassadorial contract, reflecting a broader strategy to reduce expenditures.

INEOS Cuts Costs by Ending Multi-Million Pound Agreement with Sir Alex Ferguson

Manchester United’s new part-owner, INEOS, has initiated a cost-cutting program by terminating a lucrative annual commitment to Sir Alex Ferguson, the club's most successful manager. Following his departure in 2013, Ferguson continued as a global club ambassador and director, receiving a salary that reportedly peaked at £2.16 million ($2.82 million) annually. 

Ferguson’s role, officially described in the club’s 2014 accounts, has been largely ceremonial over the years. Although he remained a director on the club's football board—previously featuring other legends like Sir Bobby Charlton—he was not part of the official board, which includes the Glazer siblings and INEOS leadership.

In a recent face-to-face meeting at Old Trafford, INEOS founder and CEO Sir Jim Ratcliffe informed Ferguson of the decision to cut costs, assuring him he would still be welcome as a non-executive director and at club matches. Sources close to the matter reported that the discussion was amicable, despite Ferguson's disappointment over recent job cuts affecting former colleagues at the club.

The Glazer family has historically supported Ferguson’s payments, acknowledging the enduring value of his legacy. However, with Ratcliffe’s acquisition of a 27.7% stake in the club earlier this year, a shift in financial strategy has been implemented. Since taking control of football operations, Ratcliffe has outlined extensive cost-saving measures, including plans to reduce staff by 250 positions and cut various expenses, such as senior executives’ credit cards and the cancellation of the employee Christmas party.

Despite these measures, Manchester United was the Premier League’s second-highest spender this summer, investing over £200 million in transfers, yet they found themselves languishing in 14th place in the league by early October.

As Ferguson approaches his 83rd birthday in December, he is stepping back from several responsibilities, including his ambassadorial role, as INEOS continues to navigate the club's financial challenges following years of losses. Under Ferguson's remarkable 27-year tenure, United secured 13 Premier League titles, five FA Cups, and two Champions League trophies, a stark contrast to the club's performance since his departure, which has seen five permanent managers and only three trophies in the last decade.