Ferguson has been an ambassador with the club since retiring as manager in 2013.
Manchester United have axed a multi-million-pound contract with Alex Ferguson as an ambassador in a cost-cutting measure as reported by The Athletic.
This comes as part of further measures by new part-owners INEOS to stem the club’s haemorrhaging money issue which even means cutting ties with the greatest person in the club’s history.
Ferguson retired in 2013, following on from a 26-year tenure during which he won 38 trophies, but was retained as a global club ambassador and club director.
For this job, he was compensated generously with an annual salary which totalled millions of pounds per year.
However, despite Ferguson’s 11-year spell at the club as an ambassador, only one reference to this role is found in the club’s 2014 accounts, where it reads that he received £2.16million for his services.
Meanwhile, Ferguson has remained a United director on the club’s football board, although the role is reportedly more ceremonial than functional, previously featuring the likes of the late Bobby Charlton and former chief executive David Gill.
Ferguson is not a member of the club’s official board.
The former United manager, who is now 82-year-old, is a regular attendee of games, but the club are trying to reduce spending.
The Athletic reported that a face-to-face meeting had taken place between minority owner Ratcliffe and Ferguson, with the pair coming to an amicable resolution, with the club cutting his salary, but allowing the Scot to attend games whenever he pleases.
Previously, when the Glazers had sporting control, they kept Ferguson as a paid ambassador with sources familiar with Joel and Avram Glazer claiming they likely believed much of the value that the club continues to generate is owed to Ferguson’s work and legacy.
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Meanwhile, Ferguson is one of the few to have never publicly criticised the Glazer family.
Sources close to Ferguson say that the legend has been saddened by the redundancy of many former colleagues and close friends at Old Trafford in the wake of widespread job cuts.
Ratcliffe hopes to save £40million to £45million per year through these cost cuts.
The INEOS owner sat next to Ferguson at his first game after acquiring his minority share in the club earlier this year and spoke about his meeting with Ferguson.
He 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.”
