Cutting costs and increasing revenue has been at the forefront of Sir Jim Ratcliffe’s mind since his Manchester United takeover was complete.
The British billionaire has been eager to reduce the club’s outgoings after the budget was hamstrung by Premier League Profit and Sustainability Rules in recent years.
Sir Jim Ratcliffe and Ineos wasted no time making sweeping changes after their minority takeover, but their most controversial move so far has been the cost-cutting measures put in place.
Ratcliffe divided opinions by cutting 250 jobs at the club this summer in an attempt to balance the club’s books.
It is understood that the staff purge at United cost £10m. Ratcliffe and his Ineos team have assessed almost every department at the club, and it seems that also includes Sir Alex Ferguson‘s role.
Sir Jim Ratcliffe ends Sir Alex Ferguson payments
It has been 11 years since Sir Alex ended his managerial career, and United have been in a downward spiral ever since.
But the legendary Scotsman remained at Old Trafford after his retirement as a global club ambassador and club director.
That role rewarded Sir Alex with a yearly salary, but according to The Athletic, Ratcliffe’s cost-cutting has now extended to the former United boss.
The report claims that Ratcliffe held face-to-face talks with Ferguson where he was told that the club are seeking to reduce costs and are no longer prepared to sustain his payments.
United’s previous accounts show that Ferguson was paid £2.16m for his services as a global ambassador with those payments continuing over the past decade.
A controversial decision from Ineos
It is only fair that Ratcliffe’s cost-cutting at Manchester United extends to not only the club staff but also the hierarchy, but stripping Ferguson of his payments is a highly controversial decision that likely won’t go down well with supporters.
Given that there is such huge pressure on manager Erik ten Hag at the moment, the timing of the news does not help.
Ratcliffe and United’s hierarchy chose not to sack Ten Hag this week despite a lengthy meeting in London. Just one week later, it has now emerged that Ineos have cut payments to Ferguson.
The report adds that Ferguson will remain a non-executive director at the club and is “welcome to attend games”.
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